Dixon Technologies (India) Limited, one of India’s largest electronics manufacturing companies, has signed a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. Ltd., a global leader in mechanical enclosures and precision components. The two companies will jointly establish a new manufacturing joint venture in India, aimed at producing precision mechanical and metal components for a wide range of applications including laptops, mobile phones, IoT devices, and automotive products.

As per the agreement signed on July 15, 2025, Dixon will hold 74% stake in the joint venture, while Chongqing will own the remaining 26%. The JV structure and operations will be finalized through mutually agreed terms, subject to regulatory approvals and execution of definitive agreements.

The joint venture will focus on manufacturing a full suite of mechanical and metal parts essential to next-generation electronics and mobility solutions. These include structural components, frames, and internal precision enclosures that are crucial to the performance, durability, and aesthetics of modern devices.

Mr. Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, expressed that the JV is a strategic step to deepen Dixon’s backward integration capabilities, reduce import dependency, and contribute to the ‘Make in India’ initiative. He emphasized that combining Chongqing’s global technological know-how with Dixon’s large-scale manufacturing infrastructure and access to leading consumer brands will create a strong value proposition for the Indian and global markets.

This partnership aims to localize key input components, a critical necessity as India moves towards becoming a manufacturing hub not just for assembly, but for the entire component ecosystem. The move also comes at a time when global OEMs are seeking reliable, local supply chains amid rising geopolitical uncertainty and calls for de-risking from traditional hubs like China.

The joint venture will also cater to emerging opportunities in wearables, hearables, telecom, and IT hardware—sectors that require miniaturized, precision components manufactured to international standards.

Chongqing Yuhai, with its global track record of innovation in precision mechanics, brings deep technical expertise and process discipline to this collaboration. Their partnership with Dixon not only strengthens India’s electronic manufacturing base but also paves the way for faster time-to-market, high-efficiency production lines, and advanced component solutions.

This marks Dixon’s second major announcement in July 2025, following its move to acquire a 51% stake in Q Tech India to produce camera and fingerprint modules. Both moves are aligned with the company’s ambition to build a fully integrated, globally competitive component ecosystem in India.

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