The Government of Tamil Nadu has signed a significant Memorandum of Understanding (MoU) with Dixon Technologies, paving the way for the establishment of a state-of-the-art laptop manufacturing plant. With a proposed investment of approximately ₹1,000 crore, Dixon will set up this facility at Indospace Industrial Park in Oragadam, located in the Kancheepuram district near Chennai. The facility will primarily assemble HP-branded laptops and all-in-one PCs, and is expected to generate around 5,000 jobs—well above the earlier estimate of 1,500.
Initial capital expenditure in the first phase is estimated to be in the ₹250–300 crore range. This marks Dixon’s 24th production unit in India, adding to its existing facilities in Uttar Pradesh, Uttarakhand, and Andhra Pradesh. The investment underscores Tamil Nadu’s growing prominence in India’s electronics manufacturing ecosystem, aligning with its broader ambition to become a USD 100 Billion electronics hub under Chief Minister MK Stalin’s leadership.
Multi-Brand Production and Advanced Manufacturing Capabilities
Although the spotlight has been on HP, industry insiders confirm that the Oragadam plant is being designed as a multi-brand manufacturing hub. According to Tamil Nadu Industries Department sources, laptops and computing devices for three additional brands are also in the pipeline.
Equipped with modern assembly infrastructure, the factory will include precision soldering systems, automated lines, and ESD-compliant zones to maintain international quality standards. The facility’s flexible design allows for adaptation across various product configurations, signaling a focus on both scale and innovation in electronics production.
Tamil Nadu’s Role in Global Supply Chain Diversification
The development is part of a broader trend of global supply chain realignment, as companies look beyond China for manufacturing bases. Tamil Nadu, already the second-largest economy in India and a national leader in manufacturing and exports, is positioning itself to take advantage of this shift.
Dixon Technologies is also scaling up in related verticals. Last year, the company entered a joint venture with Vivo India to produce smartphones and is reportedly in discussions to launch a USD 3 Billion display fabrication unit in the country. Additionally, its recent MoU with Dassault Systèmes aims to digitize its manufacturing processes using DELMIA Apriso, further signaling its long-term commitment to high-tech production.
