Dixon Technologies, based in Noida, is in talks with IT hardware companies in the United States and China about producing laptops under the segment's revised production-linked incentive (PLI) program.

According to people familiar with the situation, the company intends to invest around Rs 250 crore over the next two to three years in the construction of a new production facility and localization efforts.

They said talks with two clients, likely HP and Lenovo, are in the advanced stages and could help the electronics manufacturing services player meet incremental production targets under the revised PLI scheme.

"Dixon is in discussions with two major global brands, and a new production facility is in the works and expected to be operational in the next three to four months," said one of the executives, who did not want to be identified.

As part of the scheme's localisation schedule, he said the new plant would have a production capacity of one million notebooks per year and include lines for producing printed circuit boards (PCBs).

"Dixon already has relevant experience in establishing SMT (surface mount technology) lines for mobile phones and television, and will leverage that expertise to do the same for IT hardware." This will assist the company in increasing local value addition, which is a key target under the PLI scheme," said the second executive.