Zoho plans $700 million foray into chip manufacturing; compound semiconductors

  • Industry News
  • May 17,24
Semiconductors occupy a pivotal position in India's economic agenda, with the government implementing a $10 billion package to fortify the industry's capabilities, positioning the nation to rival established players like Taiwan in the coming years.
Zoho plans $700 million foray into chip manufacturing; compound semiconductors

Indian software giant Zoho is exploring a potential $700 million investment in chip manufacturing, with a focus on compound semiconductors tailored for specialised applications. This initiative, currently under scrutiny by India's IT ministry, aligns with the nation's semiconductor agenda, aimed at bolstering global competitiveness. Zoho is seeking government incentives to facilitate the establishment of this venture, as part of its strategy to diversify its business portfolio.

 

Established in 1996 and headquartered in Tamil Nadu, India, Zoho provides software and related services to businesses across 150 countries, competing with industry giants like Microsoft and Salesforce. Joining a trend among companies seeking government support, Zoho is now among those vying for financial incentives to set up a chip fabrication plant.

 

Semiconductors occupy a pivotal position in India's economic agenda, with the government implementing a $10 billion package to fortify the industry's capabilities, positioning the nation to rival established players like Taiwan in the coming years. Zoho's proposal entails manufacturing compound semiconductors, which offer specialised commercial applications and are crafted from alternative materials to silicon, commonly used in chip production.

 

The proposal is currently undergoing evaluation by the panel overseeing India's chip initiatives within the IT ministry. The ministry has requested further details from Zoho regarding its prospective client base. Although Zoho declined to comment, sources familiar with the matter revealed that the company has earmarked a substantial investment of $700 million for this venture. Additionally, Zoho has identified a technology partner to assist in establishing the operation, although the partner's identity remains undisclosed.

 

Sridhar Vembu, Founder & CEO, Zoho hinted at a chip design project in Tamil Nadu, underscoring the company's ambitions in this domain. While Zoho's plans to diversify into chip manufacturing have not been previously reported, the company's annual revenue surpassed $1 billion in the fiscal year ending March 2023, according to media sources.

 

India's semiconductor sector is witnessing significant momentum, with the government approving the construction of three semiconductor plants valued at over $15 billion. These plants, spearheaded by entities like Tata Group and CG Power, aim to produce and package chips for critical sectors such as defense, automotive, and telecommunications. With India projecting its semiconductor market to reach $63 billion by 2026, Zoho's potential entry into chip manufacturing underscores the nation's ambitions to establish a robust semiconductor ecosystem.

(Source: Economic Times)

Related Stories

Gears, Motors & Drives
Danfoss India unveils New Gen Intelligent drives - iC2 and iC7

Danfoss India unveils New Gen Intelligent drives - iC2 and iC7

iC2 is an all-round drive that can improve efficiency by 40% and supports IM, IPM, and SPM motors.

Read more
Smart Manufacturing
China accounts for 50% of Japan's semiconductor exports

China accounts for 50% of Japan's semiconductor exports

The value of these exports to China jumped 82% in the March quarter to ¥521.2 billion, the highest figure in data going back to 2007.

Read more
Auto & Auto Components
CMS to manufacture Zbee e-3Ws  in Pune; eyes global expansion

CMS to manufacture Zbee e-3Ws in Pune; eyes global expansion

The company intends to manufacture the Zbee in India for global export.

Read more

Related Products

Servo Drives, Fully Digital

ELECTRICAL & ELECTRONIC EQUIPMENT

Bristol Industrial Electronics offers optimum quality, fully digital servo drives. 

Read more

Request a Quote

Fluorescent Pigments for Traffic Cone

ELECTRICAL & ELECTRONIC EQUIPMENT

Aron Universal Limited offers a wide range of fluorescent pigments for traffic cone.

Read more

Request a Quote

D C Choke

ELECTRICAL & ELECTRONIC EQUIPMENT

Miracle Electronic Devices Pvt Ltd offers a wide range of D C choke.

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back