Taiwan-based firm Inventec Corporation enters India with Dixon tie up

Taiwanese original design manufacturer giant Inventec Corporation is entering India through a joint venture (JV) with Dixon Technologies (India) to manufacture notebook personal computers (PCs), desktop PCs, desktop PC components, and servers.

 

In a stock exchange filing, Dixon said it will hold a 60 per cent stake in the JV, while the remaining 40 per cent will be owned by the Taiwanese company, which has over $20 billion in annual revenue. As part of the arrangement, Dixon will appoint three directors to the board, while its JV partner will appoint two.

 

The new JV will set up a separate plant in Kancheepuram, Tamil Nadu, with an annual capacity of 2 million laptops and notebooks. Another plant, coming up on the same campus with an investment of ₹1,000 crore, along with an expansion at the Noida facility, will raise total capacity to 4 million units annually within the next three to four years, according to Atul Lal, director at Dixon.

 

With this, Dixon will account for a third of the total laptops sold in the country annually, over 14 million units as of 2024, most of which are currently imported.

 

Inventec is a major player in the global notebook and server market, with an annual production capacity of 21 million notebook computers and 4 million servers. The company has manufacturing plants in China, the Czech Republic, Mexico, Malaysia, Vietnam, and Thailand, and supplies global brands including HP, Toshiba, Acer, and Fujitsu.

 

It is also one of Taiwan’s top five electronic manufacturing services (EMS) players, alongside Foxconn, Pegatron, Wistron, and Compal (with whom Dixon has a tieup to make Google Pixel phones). With this deal, all five major Taiwanese EMS firms will now have a presence in India.

 

The deal is strategically important for Dixon, which is already a beneficiary of the production-linked incentive (PLI) scheme for information technology (IT) hardware products, including small servers.

 

It has agreements to manufacture laptops and PCs for global brands such as HP, Acer, Asus, and Lenovo. These four brands accounted for 71.7 per cent of laptop sales in India in 2024, according to Counterpoint Research, with the overall PC market reaching 14.4 million units.

 

Dixon can also leverage Inventec’s expertise as it plans to participate in the recently notified component PLI scheme.

 

Under the IT hardware PLI scheme, Dixon has committed a production value of ₹48,000 crore over six years. This accounts for one-seventh of the total additional production value committed by the 27 players.

 

The company is also setting up another laptop assembly plant with an investment of over ₹1,000 crore, targeting a capacity of 1.3 million units per annum.

 

KEY TAKEAWAYS OF PACT

 

·         Inventec enters India: The JV marks Inventec’s seventh global manufacturing location

 

·         Massive global scale: Inventec has capacity to produce 21 million notebooks and 4 million servers annually

 

·         High-volume plant: JV to build a new factory with 2 million annual laptop capacity; total output with other plants to hit 4 million

 

·         Strong brand partnerships: Dixon assembles PCs for HP, Acer, Asus, and Lenovo, together holding 72% of India’s PC market

 

·         PLI-driven growth: Dixon has committed ₹48,000 crore production value over six years under the IT hardware PLI scheme — one-seventh of total pledges by 27 players