Dixon's China JV Faces Govt Scrutiny

New Delhi, Jul 16 (PTI) The government will scrutinise recent agreements of domestic electronics contract manufacturer Dixon with Chinese firms Chongqing Yuhai and Kunshan Q Technology.

Dixon has signed separate agreements with Chinese electronic component firms -- Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology -- for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others.

"Due process will be followed when their application comes under Page Note 3 rules," an official said.

With Chongqing Yuhai Precision Manufacturing Co Ltd, Dixon plans to set up a joint venture for the business of manufacturing and supply of precision components for laptops, mobile phones, IoT, automotive and any other products.


Dixon is likely to hold a 74 per cent stake in the JV, and the rest will be owned by Chongqing.

The company has also announced the signing of a binding term sheet with Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India) and its shareholders -- Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited, for the proposed acquisition of an aggregate of 51 per cent shareholding in Q Tech India.

Kunshan Q Technology is based out of China.

With this collaboration, Dixon plans to manufacture, sell and distribute camera and fingerprint modules for mobile handsets, internet of things (IoT) systems and automotive applications.

Dixon Technologies has announced its participation in the Rs 22,919-crore incentive-based Electronics Components Manufacturing Scheme.