Government to Inspect Dixon's Partnerships with Chinese Tech Giants

The government will examine Dixon's recent agreements with Chinese companies Chongqing Yuhai and Kunshan Q Technology, aiming to manufacture electronic components. Dixon plans joint ventures and acquisitions to boost their stake in the electronics sector, involving products like mobile phones, laptops, and automotive parts under India's Electronics Components Manufacturing Scheme.

The government has initiated a review of recent collaborations between Dixon, a leading domestic electronics manufacturer, and Chinese tech firms Chongqing Yuhai and Kunshan Q Technology. These agreements could potentially reshape the landscape of electronics manufacturing in India.

Dixon has secured separate agreements with Chongqing Yuhai Precision Manufacturing Co Ltd and Kunshan Q Technology's Indian arm. These contracts aim to manufacture and market electronic components essential for various devices, including mobile phones and laptops. The review comes under the scrutiny of Press Note 3 regulations.

In partnership with Chongqing Yuhai, Dixon plans to form a joint venture focusing on precision components for devices and automotive applications, holding a 74% stake. Additionally, Dixon aims to acquire a 51% interest in Q Tech India to manufacture camera and fingerprint modules, strengthening its position in the electronics sector under the Rs 22,919-crore incentive scheme.

(With inputs from agencies.)