Tamil Nadu inks MoU with Dixon to build HP laptop factory near Chennai

Once operational, the ₹1,000 crore facility is expected to have an annual production capacity of up to two million laptops and generate over 5,000 jobs.

Published Apr 10, 2025 | 10:13 PMUpdated Apr 10, 2025 | 10:13 PM

Tamil Nadu inks MoU with Dixon to build HP laptop factory near Chennai

Synopsis: The Tamil Nadu government has signed an MoU with Dixon Technologies to set up a ₹1,000 crore HP laptop manufacturing facility at Oragadam near Chennai, under the Centre’s PLI 2.0 scheme. The plant, operated by Dixon’s subsidiary Padget Electronics, is expected to produce up to two million units annually and generate over 5,000 jobs.

The Tamil Nadu government on Thursday, 10 April, signed a Memorandum of Understanding (MoU) with electronics giant Dixon Technologies to establish a brand new state-of-the-art facility in the state to manufacture laptops for United States-based Hewlett Packard (HP).

Dixon Technologies, one of India’s leading electronics manufacturers, had earlier signed a pact with HP to manufacture personal computers in India under the Production Linked Incentive (PLI) Scheme 2.0, as first reported by Business Standard.

Tamil Nadu Industries Minister TRB Rajaa, who announced the development in a post on X, said the ₹1,000 crore facility will be set up at the IndoSpace Industrial Park in Oragadam, near Chennai.

Calling it “another big day for electronics manufacturing in Tamil Nadu,” the Minister said the project is expected to generate over 5,000 jobs, supporting youth employment and industrial development in the state.

“Dixon’s leadership acknowledged what we have always believed: Tamil Nadu’s progressive policies, robust infrastructure, highly skilled workforce and above all ease of doing business at a fast pace make it the most attractive destination for manufacturing in India,” the Minister wrote.

Chief Minister MK Stalin shared a similar view, stating in a post on X: “Another big day for electronics manufacturing in TamilNadu!”

Also Read: Tamil Nadu tops India’s growth charts with 9.69 percent GSDP surge, 29 percent jump in per capita income

Two million unit annual production target

The project supports the Dravida Munnetra Kazhagam government’s ambition to build a $100 billion electronics manufacturing ecosystem.

The plant will be operated by Padget Electronics, a wholly owned subsidiary of Dixon Technologies.

It will benefit from the Government of India’s Production Linked Incentive (PLI) Scheme 2.0 for information technology (IT) hardware, which offers financial incentives for local production of laptops, tablets, personal computers (PCs) and servers.

Once operational, the facility is expected to have an annual production capacity of up to two million laptops.

Oragadam, located in Kancheepuram district, has emerged as a key industrial hub in recent years, home to several Fortune 500 firms and major automobile manufacturers.

The new facility is expected to strengthen the region’s role in India’s electronics manufacturing landscape.

(Edited by Dese Gowda)

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