Dixon Technologies (India) Ltd, an electronics manufacturing services (EMS) company, has entered into a joint venture with Chongqing Yuhai Precision Manufacturing Co. Ltd to produce precision mechanical and metal components in India. The collaboration is aimed at enhancing localization and strengthening supply chain integration.
The joint venture will manufacture parts used in laptops, mobile phones, Internet of Things (IoT) devices, automotive products, and other agreed-upon categories. Under the terms of the agreement, Dixon Technologies will hold a 74 percent equity stake, while Chongqing Yuhai will hold the remaining 26 percent. A binding term sheet was signed around July 15, 2025.
The formation of the joint venture is subject to statutory approvals, including compliance with Press Note 3 regulations governing foreign direct investment from countries that share a land border with India.
According to Dixon Technologies, the initiative is intended to support deeper backward integration and increase domestic value addition in smartphone manufacturing—from 17 percent to an anticipated 45 percent. The move is aligned with the Indian government’s Electronics Components Manufacturing Scheme (ECMS) and Production Linked Incentive (PLI) scheme.
This announcement follows Dixon’s recent acquisition of a 51 percent stake in Q Tech India, a manufacturer of camera and fingerprint modules. The joint venture is part of the company’s broader strategy to facilitate technology transfers and improve margins, especially as benefits under the PLI scheme near completion.
Dixon Technologies is an India-based electronics manufacturing services (EMS) company operating across various product categories, including consumer electronics, home appliances, lighting, mobile phones, and security devices.
