To expand its IT hardware manufacturing business, Taiwan-based Inventec and electronics contract producer Dixon Technologies have entered into a joint venture agreement.

Reports claim that Inventec, an original design manufacturer (ODM) of IT gear, is believed to control 40 percent of the joint venture, Dixon IT Devices Private Ltd, while Dixon is said to own 60 percent.

Dixon states that the joint venture will produce desktop computers, servers, laptop PCs, and PC components in India.

Apart from the Rs 1,000-crore facility that will be built in Chennai, Dixon is expected to establish a dedicated manufacturing plant as part of the joint venture organization.

The new organization is also said to take part in the government's Rs 22,000 crore plan for the production of electronic components, they added.

Dixon is expected to submit separate applications for participation in the program from each of its subsidiaries that are being established to produce components.

 

The development follows the Trump administration's imposition of high tariffs on Chinese imports, which caused chaos in international trade. Although they have been temporarily spared, mobile phones and IT hardware are expected to be subject to new tariffs that will be revealed in May.

As an ODM partner, Inventec designs and manufactures notebooks for top PC brands, such as HP, Dell, and others worldwide.

The Dixon agreement is said to assist Inventec in controlling expenses since the cost of importing PCs from China to the US is expected to increase.

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As part of its continuous aim to gain technological expertise and access to a global clientele through ODM alliances, Dixon signed a deal with Inventec, its second such agreement with an ODM, after enlisting Longcheer, a prominent mobile phone ODM based in China.