Dixon Technologies and Gemtek Form Binding Term Sheet for Proposed Telecom Manufacturing Joint Venture
On June 9, 2026, Dixon Technologies (India) Limited and Gemtek Technology Co., Ltd. announced they have entered into a binding term sheet establishing a proposed joint venture in India. The partnership aims to focus on the manufacturing and supply of Optical Transceiver - SFP (Small Form-factor Pluggable) and BOSA (Bidirectional Optical Subassembly), or other telecom products as agreed upon by the parties.The Proposed Transaction involves Dixon Electroconnect Private Limited, a wholly owned subsidiary of Dixon Technologies, which is set to become a joint venture company for this initiative. Upon the completion of the transaction, Dixon will hold 60% of the total paid up share capital of Dixon Electroconnect, while Gemtek Technology Co., Ltd. will hold the remaining 40%.
Dixon and Gemtek are combining resources to capitalize on the rapidly growing data centre, telecom, and optical connectivity ecosystem in India.
Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies (India) Limited, stated that this strategic partnership marks Dixon’s entry into the high-growth sector. The joint venture will manufacture optical transceivers and BOSA modules to meet increasing demand driven by AI, cloud, Edge computing, hyperscale data centres, and next generation optical communication solutions. Mr. Lall noted that the initiative reinforces indigenous electronics manufacturing in line with India's 'Make In India' agenda, noting the participation of Dixon Electroconnect as a beneficiary under the Electronics Components Manufacturing Scheme (ECMS).
Howard Chen, Chairman of Gemtek Technology Co., Ltd., commented on the venture, stating that establishing the partnership with Dixon, a leading manufacturer in India, is an important step in strengthening Gemtek’s global presence. He added that the joint company will strive to build a highly competitive supply chain designed for the evolving demands of high-speed network and data center infrastructure in the AI era.
The consummation of the Proposed Transaction remains subject to the signing of definitive agreements, the completion of customary conditions precedent, and the receipt of applicable statutory, regulatory, and other approvals.
DIXON Stock Price Movement
Today, Dixon Technologies (India) Limited shares rallied 1.97% in a strong close, settling at ₹11611. The stock finished the trading day within a range of ₹11403 and ₹11660, with 298,170 shares transacted.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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