Government to Inspect Dixon's Partnerships with Chinese Tech Giants

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.)