en.Wedoany.com Reported - Indian domestic company Dixon Technologies and its subsidiary Dixon Electroconnect have signed a binding term sheet with Taiwan's Gemtek to establish a joint venture in India for the manufacturing and supply of optical transceiver modules, including Small Form-Factor Pluggable (SFP) modules and Bidirectional Optical Sub-Assemblies (BOSA).

According to a filing by Dixon Technologies with regulatory authorities on Tuesday, upon completion of the transaction, Dixon and Gemtek will hold 60% and 40% equity stakes in Dixon Electroconnect, respectively.

In January, the government led by Prime Minister Narendra Modi approved Dixon Electroconnect's project under the sub-assembly category of the Electronics Components Manufacturing Scheme (ECMS) to produce SFP modules. Atul Lall, Vice Chairman and Managing Director of Dixon Technologies, stated that this strategic joint venture marks Dixon's official entry into the rapidly growing data center, telecommunications, and optical connectivity ecosystem. Howard Chen, Chairman of Gemtek, expressed delight in establishing this strategic joint venture with Dixon, a leader in Indian manufacturing, which represents a significant step in Gemtek's global expansion and reinforces the company's commitment to expanding its optical communication business. On Tuesday, Dixon's shares closed 1.84% higher at INR 11,610.90 on the Bombay Stock Exchange (BSE). Gemtek is listed in Taiwan.

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