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Zoho halts $700 million chipmaking plan in latest setback for India
Industry News- May 05,25
As part of its diversification, Zoho had planned to commit $400 million to build a semiconductor facility in Karnataka, southern India.
Indian software company Zoho has put on hold its $700 million semiconductor manufacturing initiative, according to sources familiar with the situation, marking another setback for the Indian government’s semiconductor ambitions.
Zoho, which had been working on the plan for a year, faced difficulties securing an appropriate technology partner to guide it through the complexities of chip production, one source explained.
Separately, Reuters reported that Indian billionaire Gautam Adani’s group has also paused its discussions with Israel’s Tower Semiconductor regarding a $10 billion chip project, following an internal assessment.
Zoho, valued at approximately $12 billion, is known for providing cost-effective alternatives to cloud-based software products from companies like Microsoft. Its co-founder, billionaire Sridhar Vembu, has gained recognition for his unconventional practice of basing company operations in rural Indian villages.
As part of its diversification, Zoho had planned to commit $400 million to build a semiconductor facility in Karnataka, southern India. Vembu has publicly stated that semiconductor technology is crucial for the country’s progress.
The entire chipmaking effort, which Reuters first reported in May 2024, has now been suspended, said two sources, who requested anonymity as the decision has not yet been publicly announced.
(Reuters & The Hindu)
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