In a significant advancement, India and the United States have partnered to establish the multi-material military chip fabrication plant in Uttar Pradesh. This leading electronics company has emerged as a key player in this venture through its new subsidiary, strengthening its position in the technology manufacturing industry.
Share Price Movement
The share price of Dixon Technologies Limited has remained stable with a slight decrease of 0.57 percent to Rs. 14.377.15 per share on Tuesday. Its previous close stood at Rs. 14,434.60 per share. Over the past 6 months, the share has delivered returns of over 70.64 percent. The market capitalisation now stands at approximately Rs. 86,030 crore as of November 05, 2024.
What Happened
India and the US have signed a watershed arrangement to establish a semiconductor plant in Jewar, UP. The facility will produce chips for high-technology warfare platforms, advanced sensing, and communications. The project aims to reduce India’s semiconductor import dependency, currently exceeding one billion dollars annually.
The US Space Force, Indian Semiconductor Mission, Bharat Semiconductors, and 3ediTech will support this initiative. Dixon Technologies has also secured manufacturing contracts with global brands like HP, Lenovo, and Asus. These collaborations strengthen India’s position in IT hardware manufacturing.
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Project Details
The facility, tentatively named Shakti, represents a comprehensive semiconductor manufacturing ecosystem. Initially, it will house an advanced testing centre alongside a centre of excellence for research and development. Furthermore, two state-of-the-art fabrication units will handle high-volume production of specialised chips.
The plant incorporates cutting-edge design capabilities specifically tailored for military-grade semiconductors. Additionally, the manufacturing facility will focus on producing critical components for night vision devices, missile seekers, and space sensors. This integrated approach ensures complete control over the production chain, from design to final testing.
Financials
The company’s consolidated net profit has increased by 194.28 percent, from Rs. 140 crore in Q1 FY25 to Rs. 412 crore in Q2 FY25. Revenue as compared to the last quarter of FY25 is up by 75.28 percent QoQ from Rs. 6,580 crore to Rs. 11,534 crore.
The company’s EPS has increased by 191 percent, from Rs. 22.34 in Q1 FY25 to Rs. 65.15 in Q2 FY25. The Operating Profit Margin (OPM) has remained stable at 4%.
About the company
Founded in 1993, Dixon Technologies has evolved into India’s premier electronics manufacturing powerhouse. The company operates across seven key segments: consumer electronics, mobile phones, home appliances, lighting products, security systems, reverse logistics, and most recently, IT hardware manufacturing. Through its new subsidiary, Dixon Teletech, established in September 2024, the company demonstrates exceptional growth through strategic partnerships.
Additionally, Dixon manufactures smartphones for industry leaders like Samsung and Motorola while consistently meeting PLI targets. The company has secured manufacturing contracts with global technology giants, including HP, Lenovo, Acer, and Asus. Moreover, Dixon’s commitment to quality and innovation aligns perfectly with India’s changing import regulations, positioning it as a crucial player in the nation’s electronics manufacturing sector.
Written By Fazal Ul Vahab C H
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