Dixon Technologies to invest 600 million

Dixon Technologies, one of the most well-known electronic manufacturing services companies, plans to fund its upcoming display fabrication site using the India Semiconductor Mission 2.0 scheme. As per the latest statement from their Chief Financial Officer Saurabh Gupta, they are looking to invest approximately $600 million through a government subsidy. On the other hand, they rely on their equity partners to invest the remaining $200 million.

While talking with the NDTV Profit, Gupta states the funding proportion for this display facility. Almost 50% will be given on an equal footing offered by the central government, whereas approximately 25% will be funded by the state government. The remaining 25% will be invested by the equity partners of the company.

Dixon Technologies will command its position in the electronics component industry by setting up this display fabrication facility. They want to boost local production and minimize the focus on importing goods from foreign countries like China. Saurabh Gupta has clearly stated that their investment plan greatly depends on how the Indian government launches ISM 2.0. He added that they will take further steps once this scheme is rolled out practically. The company is planning to get involved in assembling mobile phones and IT hardware, apart from dealing with camera modules.

Schemes like ISM and PLI play a great role in developing the display manufacturing sector in the country. As per Saurabh Gupta, a large chunk of global semiconductor facilities are supported by the government, and we are looking for the same treatment from the Indian government. He further states that almost $ 11 billion worth of displays are imported by India, and they are expected to reach $ 23 billion in the upcoming years. If we talk about the company’s share, it was trading at RS 13,064 on Wednesday, almost 1.80% lower than the previous day.