Dixon In Talks To Build $3 Bn Display Fab Facility In India

SUMMARY

Dixon Technologies is in discussions to set up a $3 Bn display fabrication facility in India to boost its venture into the electronics components sector

Dixon’s managing director Atul Lall made the announcement during the Q3 earnings call

The Noida-based giant is in talks with a global tech company to build this unit, he added

Electronics manufacturer Dixon Technologies is in discussions to set up a $3 Bn display fabrication facility in India to boost its venture into the electronics components sector.

Dixon’s managing director Atul Lall made the announcement during the Q3 earnings call.

The Noida-based giant is in talks with a global tech company to build this unit, he added.

“We are in active discussion with a global technology partner for setting up a world class display fab, which is critical component, it’s a fab, in mobiles, IT hardwares and consumer electronics segment,” Lall said.

With this unit, the manufacturing giant is aiming to localise production,bring control over supply chain and cost reduction. Additionally, Dixon is also waiting for the centre’s guideline on the India Semiconductor Mission (ISM) phase 2 to take this project forward.

Talking about the capital expenditure, Lall said that around $3 Bn will be infused in the project initially with 60% allocation to televisions and 15%-12% allocation to mobile phone manufacturing. It is pertinent to note that the company is looking to take government subsidies to fuel this project.

On the financial front, Dixon claims that its consolidated revenues during the quarter that ended in December 2024 surged 117% to INR 10,461 Cr, against INR 4,821 Cr during the same quarter in the previous fiscal year.

This development comes at a time when Dixon and manufacturing giant Foxconn recently urged Indian authorities to clear their pending dues to the tune of INR 700 Cr. Both the giants are liable to these subsidies under the Centre’s production-linked-initiative (PLI) scheme.

Dixon has been bullish to boost manufacturing in the country lately. For instance, last month, it inked a pact with Vivo India to launch an original equipment manufacturer (OEM) facility via a joint venture.

In September 2024, Dixon’s subsidiary Padget Electronics signed a memorandum of understanding (MoU) with HP India to manufacture personal computers (PCs) and laptops.