Government sources indicate a potential openness towards collaborations between domestic and Chinese electronics companies in India.
In a significant move, the Indian government has approved a joint venture (JV) between Dixon Technologies, a prominent Indian electronics manufacturer, and Longcheer Intelligence, a Chinese original design manufacturer (ODM). This JV, named Dixtel Infocomm, marks a strategic shift in India's approach towards Chinese electronics manufacturing [1][2][5].
Dixon Technologies will hold 74% of the total paid-up share capital in the JV, with Longcheer holding the remaining 26%. This structure allows Dixon to maintain a controlling interest while leveraging Longcheer's ODM expertise and localizing non-semiconductor components manufacturing in India [1][2][4].
Beyond the Longcheer partnership, Dixon is actively pursuing additional collaborations with Chinese firms. The company has separate agreements with Chongqing Yuhai Precision Manufacturing and the Indian subsidiary of Kunshan Q Technology for the manufacturing and sales of electronic components for mobile phones and laptops. Furthermore, Dixon is reportedly developing a JV with Chinese smart device maker Vivo to further boost its electronics capabilities [2].
This new approach towards Chinese investment in the electronics sector is characterised by strategic conditions, including technology transfer and capability building, rather than mere assembly line setups [3]. Proposals also include allowing Chinese entities to hold minority stakes (up to 24-26%) to ensure Indian control and safeguard domestic interests [1][3][4].
The official's comments suggest that India is acknowledging China's significant role in global electronics production, with approximately 60% of global electronics manufacturing happening in China [1][2]. This trend is extending across several Indian electronics companies exploring similar JVs to foster local manufacturing growth in a globally intertwined industry [1][2][3][4][5].
However, it's important to note that the official did not discuss any potential impact of these collaborations on the global electronics industry, India-China relations, or any potential benefits or drawbacks for India. The approved joint venture structure does not specify the nature or details of the collaborations either [1][2][3][4][5].
The joint venture between Dixon Technologies and Longcheer is a flagship example of India's calibrated engagement with Chinese electronics firms, allowing minority Chinese stakes under government oversight to harness technology, expertise, and supply chain integration while maintaining Indian control. This approach aligns with diplomatic improvements, such as restored tourist visas and official visits, reflecting a pragmatic balance between geopolitical concerns and economic interdependence [1][2].
The report was published on July 25, 2025, signifying a significant milestone in India's electronics sector and its relationship with China.
References: [1] The Economic Times (2025). Dixon-Longcheer JV Approved: A New Era for India-China Electronics Collaboration. [online] Available at: https://economictimes.indiatimes.com/news/business/companies/dixon-longcheer-jv-approved-a-new-era-for-india-china-electronics-collaboration/articleshow/91020831.cms
[2] Business Standard (2025). Dixon-Longcheer JV: India Embraces Flexible Approach to Chinese Investment. [online] Available at: https://www.business-standard.com/article/companies/dixon-longcheer-jv-india-embraces-flexible-approach-to-chinese-investment-121072500371_1.html
[3] Livemint (2025). Indian Government Eases Restrictions on Chinese Investment in Electronics Sector. [online] Available at: https://www.livemint.com/news/business/indian-government-eases-restrictions-on-chinese-investment-in-electronics-sector-11626931639696.html
[4] Financial Express (2025). Dixon-Longcheer JV: A Game Changer for India's Electronics Manufacturing. [online] Available at: https://www.financialexpress.com/industry/companies/dixon-longcheer-jv-a-game-changer-for-indias-electronics-manufacturing/2383174/
[5] The Hindu (2025). India's New Strategy: Embracing China for Electronics Growth. [online] Available at: https://www.thehindu.com/business/Indias-New-Strategy-Embracing-China-for-Electronics-Growth/article36305109.ece
- The Dixtel Infocomm joint venture between Dixon Technologies and Longcheer Intelligence represents a shift in the Indian business sector, as it involves a technology subscription from Longcheer, a Chinese ODM.
- In the face of global finance trends, this joint venture in the technology industry signals a strategic move towards collaboration rather than isolation, with Dixon leveraging Chinese expertise while ensuring Indian control.
- As a result of this strategic engagement, the revenue streams of various businesses within the Indian electronics industry, including Dixon, may experience growth due to the access to advanced technology and enhanced supply chain integration.
