Dixon, Taiwanese Gemtek to form JV to make SFPs, optical gear in India
Homegrown Dixon Technologies and its subsidiary, Dixon Electroconnect, have entered into a binding term sheet with Taiwanese Gemtek to establish a joint venture (JV) in India for manufacturing and supplying optical transceivers, including small form-factor pluggables (SFPs) and bidirectional optical assembly (BOSA).
Upon the completion of the transaction, Dixon and Gemtek will hold 60% and 40% equity in Dixon Electroconnect, according to a regulatory filing by the contract manufacturing services provider on Tuesday.
“We are pleased to announce the strategic Joint Venture partnership between Dixon Technologies (India) Limited and Gemtek, marking Dixon’s official entry into the rapidly growing data centre, telecom and optical connectivity ecosystem,” said Atul Lall, vice chairman and managing director of Dixon Technologies.
In January, the Prime Minister Narendra Modi-headed government approved Dixon Electroconnect’s project under the sub-assembly category to manufacture SFPs under the Electronic Components Manufacturing Scheme (ECMS).
“We are pleased to establish this strategic joint venture partnership with Dixon, a manufacturing leader in India. This represents an important step in Gemtek’s global footprint and reinforces our commitment to expanding our optical communication business,” said Howard Chen, chairman of Gemtek.
Dixon’s shares closed 1.84% higher on the BSE Tuesday at ₹11,610.90. Gemtek is listed in Taiwan.
