Dixon Technologies (India) Limited signed a joint venture agreement with Taiwan based Gemtek Technology Co. Ltd on 7 October 2026 to manufacture telecom and optical connectivity products in India. The venture will operate through Dixon Electroconnect Private Limited, with Dixon holding 60% and Gemtek holding 40%. It marks Dixon’s entry into high value optical components for artificial intelligence, cloud and hyperscale data centres.
What Is Dixon Technologies?
Dixon Technologies India Limited is an Indian electronics manufacturing services company based in Noida, Uttar Pradesh. Founded in 1993 by Sunil Vachani, it is India’s largest contract manufacturer for televisions, mobiles, lighting, home appliances and telecom gear, serving brands such as Samsung, Xiaomi and Philips.
Electronics Manufacturing Services (EMS) means designing, assembling and testing electronic products for other brands. Dixon follows this model. It does not sell most products under its own name. It manufactures for domestic and global brands and earns revenue from manufacturing contracts.
Dixon started with a single factory in Noida making colour televisions. The company is listed on the BSE and NSE since its initial public offering in 2017. Dixon now operates 17 manufacturing units across India, with major facilities in Noida, Chittoor in Andhra Pradesh and other states. Dixon reported revenue of ₹38,880 crore in FY25. Sunil Vachani is the Executive Chairman and Atul B. Lall is the Vice Chairman and Managing Director (as of October 2026).
In recent years Dixon has moved beyond finished consumer goods into components and high value hardware. Dixon makes smartphones through Padget Electronics, its subsidiary, and has exported smartphones worth nearly ₹5,500 crore in the last year. Dixon has also entered joint ventures for mobile phones and displays, including partnerships linked to Vivo, Longcheer and HKC. The Gemtek deal extends this shift from assembly of final products to manufacturing of core telecom components inside India.
What Is a Joint Venture?
A joint venture is a separate business created by two or more companies that pool capital, technology and management to pursue a specific project. The partners share ownership, profits, risks and board control under a joint venture agreement, while remaining independent companies in their other operations.
JV is the short form of joint venture. In an equity joint venture, the partners subscribe to shares of a new or existing company and own it in a fixed ratio. In a contractual joint venture, the partners cooperate through a contract without creating shared ownership. The Dixon Gemtek arrangement is an equity joint venture.
Dixon Electroconnect Private Limited, currently a wholly owned subsidiary of Dixon, will become the joint venture company. Dixon and Gemtek will subscribe to fresh equity shares based on valuation reports prepared under applicable law. After completion, Dixon will own 60% and Gemtek will own 40%. Neither company will acquire a stake in the other.
The joint venture agreement also sets out control and governance terms. Dixon will nominate three directors and Gemtek will nominate two directors to the board of Dixon Electroconnect. Dixon will nominate the Chairman. The agreement covers reserved matters that need shareholder approval, information rights, representations and warranties, indemnities, exit rights and dispute resolution. The deal remains subject to customary conditions precedent and is expected to close by 3 February 2027.
Dixon Gemtek JV: Products, Stake and Deal Terms
Gemtek Technology Co. Ltd is a Taiwan based wireless communications company established in 1988 and headquartered in Hsinchu, Taiwan. Gemtek is listed on the Taiwan Stock Exchange with stock code 4906 and employs more than 4,500 people worldwide. Gemtek works as an Original Design Manufacturer (ODM), which means it designs and makes products that other companies sell under their own brands. Its portfolio covers Wi-Fi routers, broadband equipment, LTE and 5G customer premises equipment, antennas and, in recent years, optical transceivers and cloud and Internet of Things solutions. Gemtek has factories in Taiwan, China, Vietnam, the Czech Republic and the United States.
The joint venture will manufacture and supply Optical Transceiver SFP (Small Form-factor Pluggable) modules and BOSA (Bidirectional Optical Subassembly) modules in India. The partners can add other telecom products by mutual agreement. These are small plug-in components used inside telecom switches, broadband equipment and data centre servers to send and receive high speed data over optical fibre. Dixon brings large scale manufacturing and supply chain strength. Gemtek brings expertise in high speed optical modules, photonic integration and telecom networking technology.
The deal followed a clear timeline. Dixon, Gemtek and Dixon Electroconnect signed a binding term sheet on 9 June 2026 for the proposed venture. The three parties then executed the definitive joint venture agreement on 7 October 2026. Dixon disclosed the agreement to the stock exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The transaction will close after customary conditions are met.
| Deal Element | Detail |
|---|---|
| Joint venture company | Dixon Electroconnect Private Limited |
| Partners | Dixon Technologies (India) Limited and Gemtek Technology Co. Ltd |
| Shareholding after completion | Dixon 60%, Gemtek 40% |
| Method | Fresh equity subscription based on valuation reports |
| Products | Optical Transceiver SFP, BOSA, other mutually agreed telecom products |
| Board control | Dixon nominates 3 directors and Chairman, Gemtek nominates 2 directors |
| Current status of JV company | No turnover as on 31 March 2026, paid up capital ₹1 lakh, operations yet to start |
| Expected completion | 3 February 2027 |
Dixon has stated that its subscription to shares of Dixon Electroconnect may qualify as a related party transaction because the company is currently its wholly owned subsidiary. Dixon has said the subscription will take place on an arm’s length basis under applicable law. Gemtek and Dixon are not related parties. Production is planned to commence by the fourth quarter of FY27.
Why Optical Transceivers and BOSA Matter
An optical transceiver is a small device that converts electrical signals into light signals and back again. Switches and servers speak in electricity. Optical fibre carries light. The transceiver sits between them and allows fast data to travel over fibre with very low loss. A Small Form-factor Pluggable (SFP) transceiver is a compact, hot swappable version. Hot swappable means it can be inserted or removed without switching off the equipment. SFP modules follow a common Multi-Source Agreement (MSA), so modules from different makers work across different network devices.
Inside the module are tiny optical parts. The Transmitter Optical Subassembly (TOSA) changes electrical signals into light using a laser diode. The Receiver Optical Subassembly (ROSA) catches incoming light with a photodiode and changes it back into electricity. A Bidirectional Optical Subassembly (BOSA) combines both functions into one unit. BOSA uses Wavelength Division Multiplexing (WDM) filters to send and receive two different colours of light over a single fibre at the same time. This halves fibre use, cuts cost and saves space.
| Component | Function |
|---|---|
| TOSA | Converts electricity to light for transmission |
| ROSA | Converts incoming light back to electricity for processing |
| BOSA | Combines TOSA and ROSA with WDM filters for two way traffic on one fibre |
Demand for these parts is rising fast. Artificial intelligence training, cloud computing, edge computing and hyperscale data centres need huge volumes of high speed links between servers, storage and network switches. Gemtek offers optical connectivity from 1G to 1.6T speeds for broadband, telecom and AI data centre use. Fibre to the home, 5G backhaul and data centre interconnects all use SFP and BOSA modules. India currently imports most of these precision components. Local manufacturing can shorten supply chains, lower costs for network rollouts and support future upgrades to faster speeds.
Significance for Make in India and Telecom Manufacturing
Dixon Electroconnect is already a beneficiary under the Electronics Component Manufacturing Scheme (ECMS). The Union Cabinet approved ECMS on 28 March 2025 with an outlay of ₹22,919 crore. The Ministry of Electronics and Information Technology notified the scheme on 8 April 2025. ECMS runs for six years with a one year gestation period. It aims to attract investment of ₹59,350 crore, enable production worth ₹4,56,500 crore and create 91,600 direct jobs. The scheme gives tailored incentives to makers of components and subassemblies to raise domestic value addition and link Indian firms with global value chains. Actual commitments had already crossed ₹1.15 lakh crore by September 2026.
The Gemtek partnership fits this policy push. Dixon’s Vice Chairman has described the venture as support for indigenous electronics manufacturing and globally competitive supply chains in line with Make in India. Instead of importing optical modules for broadband and data centre projects, Indian buyers can source them from domestic factories. This helps telecom operators, internet providers and data centre builders. It also helps Dixon climb the value chain from final assembly to precision components, where margins are higher and technology barriers are stronger.
The deal also deepens India Taiwan manufacturing ties. Taiwan leads in semiconductors, networking hardware and optical systems. Gemtek has said the venture will expand its optical communications business and build a competitive supply chain for cloud and edge computing in the AI era, while adding geographic diversification beyond its existing plants. For India, such partnerships bring design knowhow, photonic integration skills and access to global customers. Dixon has also committed to participate in the upcoming telecom equipment manufacturing zone in Gwalior.
Competition in Indian EMS is intensifying. Dixon competes with players such as Kaynes Technology, Amber Enterprises and Syrma SGS. All four are expanding into industrial, automotive and telecom hardware to reduce dependence on consumer electronics. Electronics has become India’s third largest export category in FY25. The government has set a goal of 500 billion dollars in electronics manufacturing value by 2030-31. Ventures that localise high speed optical parts directly support that target and strengthen supply resilience for 5G, broadband and AI infrastructure.
The Way Forward
The immediate step is closing the transaction. Dixon and Gemtek must complete customary conditions precedent, finalise valuation reports and subscribe to fresh equity in Dixon Electroconnect. The agreed long stop date is 3 February 2027. After closing, the partners will set up cleanroom assembly, testing and calibration lines for SFP and BOSA modules. Gemtek showcased its 1G to 1.6T optical portfolio at India Mobile Congress 2026, held from 7 to 10 October 2026 at Yashobhoomi in New Delhi, which signals the product range the venture can localise.
Scale will depend on customer qualification. Telecom and data centre buyers test optical modules for long periods before bulk orders. Dixon will need to win approvals from domestic operators and global equipment makers. Payouts under ECMS are linked in part to production and employment targets, so output and hiring will shape incentives. If early products succeed, the agreement allows the partners to add other telecom products by mutual consent. This can include higher speed transceivers, passive optical network modules and networking gear for AI factories.
The risks are execution and cost. Optical modules need dust free processes, precise alignment and stable yields. Global prices fall quickly as speeds rise. The venture must therefore move fast from basic SFP modules to higher speed variants used in hyperscale facilities. Success would give India a domestic base for a component that sits at the heart of every fibre link, from village broadband to large AI clusters.
Key Takeaways
- Dixon Technologies and Taiwan’s Gemtek Technology signed a joint venture agreement on 7 October 2026 to make telecom and optical connectivity products in India.
- The venture will operate through Dixon Electroconnect, with Dixon holding 60% and Gemtek holding 40% after fresh equity subscription.
- The JV will manufacture Optical Transceiver SFP and BOSA modules, which enable high speed data over optical fibre for AI, cloud and hyperscale data centres.
- The transaction follows a binding term sheet of 9 June 2026 and is expected to close by 3 February 2027.
- Dixon Technologies, founded in 1993 and based in Noida, is India’s largest Electronics Manufacturing Services company, while Gemtek, founded in 1988 in Hsinchu, is a Taiwanese ODM for wireless and optical products.
- Dixon Electroconnect is a beneficiary under the Electronics Component Manufacturing Scheme, approved in March 2025 with an outlay of ₹22,919 crore to boost domestic component manufacturing.
