Dixon Technologies (India) Limited plans an optical-components venture with Taiwan’s Gemtek Technology Co., Ltd., starting with telecom networks before higher-speed data-center products as Dixon expands its manufacturing business.
An Oct. 7 exchange filing says the proposed venture would operate through Dixon Electroconnect Private Limited, then a wholly owned Dixon subsidiary. It would make and supply small form-factor pluggable (SFP) optical transceivers, bidirectional optical subassembly (BOSA) and other telecom products agreed by the partners in India. After closing, Dixon would own 60% and Gemtek 40%. Both companies would subscribe for new shares, but the filing does not specify each party’s contribution.
On Friday’s earnings call, Dixon Vice Chairman and Managing Director Atul Lall said telecom networks would be the venture’s initial market, with higher-speed data-center products later. He said trial runs were targeted for Q4 FY27, while commercial production was planned for the following fiscal year. Lall estimated the initial outlay at ₹500 million to ₹600 million. Dixon’s filing cited demand from AI, cloud, edge-computing and data-center infrastructure as part of the market rationale.
Dixon has also discussed silicon photonics and advanced packaging. Lall said the advanced-packaging effort would be separate from Gemtek and eligible for ISM 2.0. He said the Gemtek project was covered by India’s Electronics Components Manufacturing Scheme (ECMS), and its application had been approved. Saurabh Gupta, Dixon’s director and group CFO, said the separate work could generate high margins and returns on capital close to Dixon’s current group profile.
NDTV Profit reported Oct. 30 that Dixon had not announced a final investment commitment, production timeline or confirmed customer orders for its separate silicon photonics and advanced-packaging plans.
The exchange filing expects the Gemtek transaction to be completed by Feb. 3, 2027, subject to closing conditions.
