Inventec, a leading Taiwanese original design manufacturer (ODM), has entered a joint venture with India's Dixon Technologies to produce notebooks (NB), servers, desktops, and electronic components domestically. The new company, Dixon IT Devices Private Limited, will be majority-owned by Dixon (60%), with Inventec holding 40%. The jointly operated factory is scheduled for completion by the second quarter of 2026.
The initiative prioritizes notebook production, positioning Inventec as the second Taiwanese ODM, after Foxconn, to manufacture notebooks locally in India. Inventec plans to send technical staff soon to assist in setting up the final assembly line alongside Dixon.
HP collaboration and expectations of other clients
HP, one of Inventec's major clients, announced in May a partnership with Dixon Technologies for significant production of notebooks, desktops, and all-in-one PCs within India. HP aims to double its manufacturing output there by 2025, aligned with the Indian government's Production Linked Incentive (PLI) scheme designed to stimulate local manufacturing.
Although Inventec did not disclose details on client involvement, supply chain sources suggest that the joint venture with Dixon primarily addresses HP's growing demand. There is industry speculation that other major PC brands, such as Dell, Lenovo Group, Acer, and Asus, which have been expanding their manufacturing capacities in India, might place orders with the new venture in the future.
India's PLI program attracts global electronics production
India continues to advance the PLI program aggressively to lure global electronics manufacturers seeking alternatives to China amid ongoing geopolitical uncertainties. Notebook brand owners are increasing production in India, attracted by both the country's immense domestic market and eligibility for financial incentives under the PLI scheme.
Despite these efforts, India's electronics manufacturing ecosystem remains less mature compared to China's well-established supply chains. While brand owners have expressed strong interest in producing locally, the supply chain was largely dormant until recent developments in 2025.
Several ODMs have previously tried establishing Indian factories but ultimately exited. Wistron Group, for instance, produced iPhones in India before selling its plant to the Tata Group. Pegatron Corp. recently sold 60% of its Chennai facility to Tata, which was converted into a joint venture. Inventec itself announced plans for an NB factory in 2015 but withdrew quietly, now re-entering the market with this new partnership.
In contrast, Foxconn has leveraged its longstanding presence in India to gradually expand capacity. Industry reports confirm Foxconn's wholly-owned Indian subsidiary secured orders from US-based brand customers and began deliveries earlier this year, albeit at low volumes. Foxconn's expertise in cost control is expected to increase its order share further.
Joint ventures provide risk management and flexibility
Given the high risks associated with sole ownership in emerging manufacturing hubs, joint ventures provide a balanced approach to entering and exiting markets. Inventec's collaboration with Dixon illustrates this strategy. Dixon already operates multiple joint ventures, including a recent one with Chinese smartphone maker Vivo where Vivo holds 49% and Dixon 51%, producing mobile phones and electronics.
Inventec characterizes the alliance as a powerful combination to capture India's growing IT hardware segment. Founded in 1975, Inventec ranks among the world's top five PC ODMs, with strong design and manufacturing capabilities across notebooks, IoT devices, and servers.
Inventec president Jack Tsai emphasized Dixon's mature and highly automated production system, alongside its alignment with India's localization policies. The joint venture aims to integrate Dixon's local manufacturing advantages with Inventec's engineering expertise, supply chain management, and system integration to enhance operational flexibility and service quality in India.
Dixon managing director Atul B. Lall expressed honor in partnering with a global leader like Inventec to expand their footprint in fast-growing product categories such as notebooks and servers, marking a key milestone in Dixon's growth trajectory.
Challenges persist despite strategic opportunities
Supply chain insiders acknowledge that while India has promoted the PLI scheme for some time, its notebook supply chain remains incomplete. Although labor availability is adequate, a lack of workforce familiarity with notebook assembly necessitates time for skill development. Additionally, legal and cultural differences pose challenges for factory management, including difficulties in recruiting Taiwanese managers for local assignments.
Analysts suggest that Inventec's joint venture approach with a local manufacturer is a pragmatic response to meet customer demands while mitigating operational risks. As geopolitical pressures prompt brand owners to diversify production locations, India's potential remains promising but order volumes are still limited. The economics of single-customer factories are challenging, making joint ventures a flexible solution to navigate these constraints while positioning for future growth.
Article edited by Jack Wu
