Dixon Technologies is in active discussions with a global technology company to establish a display fabrication facility (fab) worth $3 billion in India. The company is also in the final stages of negotiations for a joint venture with a leading original design manufacturer (ODM), which is a major supplier of notebooks and servers to global brands.
As per the company, the total capex requirement for the display fab is around $3 billion. A large part of the capex will be subsidised by the government under the Indian Semiconductor Mission (ISM) 2.0. The company is awaiting policy guidelines under the ISM 2.0 from the government of India to proceed with the project.
The display fab will cater to Dixon’s existing customers across mobile, television, and notebook segments, while also serving other players in the market.
The company has also finalised the location of manufacturing of displays in parternship with HKC and expects manufacturing to start during Q1-Q2 of the next fiscal. Meanwhile, Dixon’s dedicated IT hardware manufacturing unit is set to to begin trial production in February 2025, with mass production slated for the first quarter of FY25-26.
