Electronics contract manufacturer Dixon Technologies will be producing notebooks for Taiwanese company Asus under the Production-linked Incentive 2.0 scheme, as per the company's statement in an exchange filing.

Asus is the fourth global company, after HP, Lenovo, and Acer, to join forces with Dixon in manufacturing laptops locally.However, the agreement is subject to signing definitive agreements.

"We are delighted and encouraged by the trust they have bestowed on Dixon for this collaboration. Asus has established a strong and trusted foothold worldwide, thanks to its advanced technology, and we see them as our ideal long-term strategic partner who shares our core values," said Vice Chairman and Managing Director Atul Lall in a statement on Friday.

Dixon will conduct production through its subsidiary Padget Electronics at an upcoming facility in Chennai, which will have a capacity of producing 2 million laptops a year.

ASUS is a Taiwanese multinational computer, phone hardware and electronics manufacturer headquartered in Beitou District, Taipei, Taiwan. Its products include desktop computers, laptops, netbooks, mobile phones, networking equipment, monitors, Wi-Fi routers, projectors, motherboards, graphics cards, optical storage, multimedia products, peripherals, wearables, servers, workstations and tablet PCs. The company is also an original equipment manufacturer.