Dixon Technologies (India) Limited has entered into a binding term sheet with Gemtek Technology Co. Ltd. and its wholly owned subsidiary Dixon Electroconnect Private Limited to set up a joint venture for manufacturing optical transceiver modules and telecom products in India. The binding term sheet was executed on June 9, 2026, and the proposed joint venture company is Dixon Electroconnect.
Under the proposed structure, Dixon will hold 60% of the paid-up share capital of Dixon Electroconnect, while Gemtek will hold the remaining 40%. The joint venture will manufacture Optical Transceiver - SFP (Small Form-Factor Pluggable) and BOSA (Bidirectional Optical Subassembly) modules, along with other telecom products as mutually agreed by the parties from time to time.
Dixon Electroconnect is currently a wholly owned subsidiary of Dixon and a beneficiary under the Electronics Components Manufacturing Scheme (ECMS). The proposed joint venture marks Dixon's entry into the data centre, telecom, and optical connectivity ecosystem. The manufacturing will target demand driven by AI, cloud computing, edge computing, and hyperscale data centres requiring high-speed networking and next-generation optical communication solutions such as optical transceivers, BOSA modules, and advanced networking equipment.
The consummation of the transaction is subject to the signing of definitive agreements, completion of customary conditions precedent, and receipt of applicable statutory and regulatory approvals.
Gemtek Technology Co. Ltd. is a Taiwan-based company specialising in optical connectivity, wireless communications, and broadband solutions with a product portfolio spanning optical transceivers, wireless access devices, and broadband infrastructure. The partnership combines Dixon's large-scale manufacturing capabilities with Gemtek's expertise in high-speed optical modules, telecom infrastructure, and networking technologies to strengthen indigenous electronics manufacturing in India.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.