Dixon Technologies stock targets silicon photonics for AI data centers

Dixon Technologies is evaluating silicon photonics and advanced semiconductor packaging as it seeks to expand beyond conventional electronics manufacturing. News18 reported the plans on Saturday, October 31, citing comments by Vice Chairman and Managing Director Atul Lal during the company's second-quarter fiscal 2027 earnings call.

Dixon is considering partnerships and acquisitions to build capabilities in high-speed optical transceivers and advanced packaging in India. Management is targeting optical transceivers operating at 800G and above, products that support high-speed data transmission between servers and other systems in AI data centers.

Gemtek venture opens networking route

The company has already moved into the area through a joint venture with Taiwan-based Gemtek Technology. Dixon plans to hold 60 percent of the venture through Dixon Electroconnect, while Gemtek would own the remaining 40 percent. The venture is intended to manufacture optical transceivers and telecom products in India for global markets.

Management sees potentially higher margins in silicon photonics and advanced packaging than in traditional electronics assembly. The initial development investment discussed by the company is 50 crore to 60 crore Indian rupees, while the broader expansion remains under evaluation.

The plans have not yet produced confirmed customer orders or a final manufacturing timetable. For investors, the opportunity offers a possible route into higher-value technology manufacturing, but execution, customer adoption and capital allocation remain important next steps.

Dixon Technologies stock traded at 11,000 Indian rupees on the National Stock Exchange at 11:58 CET on Friday, October 30.