Recently, the Tamil Nadu government signed a Memorandum of Understanding (MoU) with Dixon Technologies where Dixon Technologies will invest around ₹1,000 crore to develop a modern laptop manufacturing facility. The facility, to be established at Indospace Industrial Park in Oragadam, will primarily produce HP-branded laptops and all-in-one personal computers, while creating approximately 5,000 jobs.
This substantial investment of ₹1,000 crore (approximately £96 million) will materialise in phases, with initial investment projected between ₹250-300 crore. The strategic facility in Kancheepuram district, approximately 45 kilometres south of Chennai, will become Dixon’s 24th manufacturing unit nationwide, complementing their existing operations across Uttar Pradesh, Uttarakhand, and Andhra Pradesh.
Despite initial announcements highlighting HP laptop production, industry sources reveal that the facility is designed as a multi-brand manufacturing hub. According to information from the Tamil Nadu Industries Department, devices for three additional brands are also planned for production at this site.
The economic impact of this facility extends well beyond its physical boundaries. With approximately 5,000 new employment opportunities, primarily benefiting youth in and around the Kancheepuram district, the initiative represents a significant boost to local employment. This figure marks a substantial increase from the initially anticipated 1,500 jobs announced during earlier discussions between HP and Padget Electronics (Dixon’s wholly-owned subsidiary) in September 2024.
Built with modern production requirements in mind, the plant will incorporate automated assembly lines, precision soldering systems for motherboards, and comprehensive quality control setups, including dedicated electrostatic discharge (ESD)-safe zones. Such features are intended to ensure that the production process meets international standards while remaining flexible enough to adapt to manufacturing different PC models.
This investment aligns perfectly with Tamil Nadu’s ambitious economic objectives. The state has emerged as India’s second-largest economy and is the leading state in manufacturing and exports. Under Chief Minister MK Stalin’s leadership, Tamil Nadu is actively building a $100 billion electronics manufacturing ecosystem, with this facility representing a crucial component of that vision.
Beyond this laptop manufacturing initiative, the company announced a joint venture with Vivo India last year to manufacture smartphones and is reportedly in discussions to establish a $3 billion display fabrication facility in India. Furthermore, Dixon has recently signed an MoU with Dassault Systèmes to leverage their DELMIA Apriso applications to transform manufacturing operations.
As global supply chains continue to diversify beyond China, Tamil Nadu’s strengthening electronics manufacturing capabilities position it to capture a greater share of relocated manufacturing operations.
