Stories
Dixon Tech and Gemtek Form JV to Manufacture Telecom Products in India
- •Dixon Technologies signed a joint venture agreement with Taiwan-based Gemtek Technology Co. Ltd to manufacture optical transceivers and bidirectional optical subassemblies in India.
- •Dixon Electroconnect will become a joint venture with Dixon holding a 60 percent stake and Gemtek holding the remaining 40 percent.
- •The venture aims to tap into growing demand from artificial intelligence, cloud and edge computing, hyperscale data centres, and next-generation optical communication.
- •Dixon expects the partnership to help it enter the data centre, telecom, and optical-connectivity ecosystem by combining manufacturing capabilities with Gemtek's technical expertise.
- •The transaction is expected to be completed by February 3, 2027, subject to customary closing conditions.
Key Questions Answered
Dixon Technologies signed a joint venture agreement with Taiwan-based Gemtek Technology to convert Dixon Electroconnect into a joint venture. Under the agreement, Dixon will hold a 60% stake while Gemtek will hold the remaining 40%. The partnership will manufacture optical transceivers, BOSA modules, and other telecom products in India.
The joint venture will manufacture Optical Transceiver-SFP (Small Form-Factor Pluggable), BOSA (Bidirectional Optical Subassembly), and other telecom and networking products mutually agreed upon by the partners. The venture aims to tap into growing demand driven by artificial intelligence, cloud computing, edge computing, and hyperscale data centres.
The transaction between Dixon Technologies and Gemtek Technology is expected to be completed by February 3, 2027, subject to customary conditions. Dixon will nominate three directors and the chairman to the joint venture's board, while Gemtek will nominate two directors.
