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Dixon Technologies has signed the definitive JV agreement with Taiwan-based Gemtek Technology

ICICIdirect Research 08 Oct 2026 DISCLAIMER

News: Dixon Technologies has signed the definitive JV agreement with Taiwan-based Gemtek Technology to manufacture SFP optical transceivers, BOSA modules and other telecom products in India. Dixon will hold 60% and Gemtek 40%, with completion expected by February 2027. The JV will target opportunities across AI, cloud/edge computing, hyperscale data centres and high-speed networking.

View: The development is largely a formalisation of the JV that was already announced through a binding term sheet in June 2026, rather than a new business win. Dixon’s telecom business has already scaled meaningfully, with management indicating revenue of ~₹5,000 crore in FY26, up from ~₹3,600 crore in FY25 and ~₹700 crore earlier; for FY27, management expects telecom revenue of ~₹6,700–7,000 crore, with further growth expected thereafter. The Gemtek JV therefore provides an additional growth avenue within this rapidly expanding vertical, particularly in higher-value optical connectivity products for data centres and AI infrastructure.

Impact: Positive

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