Dixon Seeks Govt Approval for JV with China’s HKC to Make Display Modules

Noida-based electronics contract manufacturer Dixon Technologies has filed an application with the Indian government seeking approval for a joint venture with China-based display firm HKC.

Dixon’s chairman, Sunil Vachani, told the media that the application was filed under Press Note 3 about six weeks ago. The Press Note 3 mandates government approval for foreign investments from countries sharing a land border with India, including China, Afghanistan, Pakistan, Nepal, Bhutan, Bangladesh, and Myanmar.

The proposed partnership involves establishing a display module manufacturing facility in Noida, aimed at producing components for mobile phones, laptops, and televisions. HKC is expected to hold a minority stake in the venture, which plans to begin commercial production of tablets, laptops, and mobile phones priced under ₹15,000 by next year.

However, according to a report by The Economic Times, Vachani said the company will consider alternative manufacturing routes if the required approvals are not granted.

Explaining the strategy behind the move, Vachani noted that several Korean and Taiwanese companies have exited the low-end display technology space, presenting a significant market opportunity. He also mentioned that the approval application would be assessed on a case-by-case basis.

In parallel, Dixon is pursuing multiple partnerships to strengthen India’s manufacturing ecosystem for diodes and electronic components. The company already participates in five Production-Linked Incentive (PLI) schemes covering telecom, LEDs, air conditioners, and IT hardware. Additionally, it has submitted proposals under the PLI scheme for high-value components such as compressors and motors.

In December 2024, Dixon Technologies announced a joint venture with Chinese smartphone giant Vivo. Dixon holds a 51% stake, while Vivo India retains 49%. The collaboration aims to manufacture smartphones and other electronic devices, not only for Vivo but potentially for other brands as well.

Several Indian electronics manufacturers have been seeking partnerships with their Chinese counterparts as the Indian government pushes for increased domestic electronic manufacturing.

Early reports show that the government has encouraged Chinese companies to collaborate with local manufacturers, with such partnerships often seen as a prerequisite for accessing benefits under the Production-Linked Incentive (PLI) schemes.

Chinese smartphone giant BBK Group has also partnered with Dixon Technologies and the Karbonn Group to manufacture its Oppo, Vivo, and Realme devices in India. Oppo, meanwhile, has commenced local production through the Bhagwati-Huaqin joint venture based in Greater Noida.