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Looks like Taiwan is the next leg of Dixon's growth story. The company has formed a joint venture with country’s Gemtek Technology, just days after striking another deal with a Taiwanese hardware giant.
What’s going on: the joint venture will manufacture optical transceivers, BOSA modules and other telecom products in India.
Think of them as the hardware that carries internet and mobile data from one place to another at high speed.
Dixon will hold a 60% stake in the venture through its wholly owned subsidiary Dixon Electroconnect Pvt Ltd, while the rest will go to Gemtek.
What will they do: apart from the internet, through this joint venture, Dixon will also manufacture broadband infrastructure, and data centres.
In simple terms, these are the components that help your mobile internet, cloud services, AI applications, and streaming platforms run smoothly and at high speeds.
Why this matters: Dixon is already one of India's largest electronics manufacturers, for major brands. But this partnership takes the company beyond consumer gadgets and into the infrastructure that powers the internet itself.
Big theme: undoubtedly, there is data centre boom. Every ChatGPT query, Netflix stream, UPI transaction, Instagram reel, and cloud application needs to be processed and stored inside data centres.
India's data centre capacity is expected to more than double by 2030. Adding to this, Reliance and Meta have also teamed up to build Meta's first AI-enabled data centre in India.
