‘We did not have confidence’ says Zoho’s Sridhar Vembu on shelving $700 million semiconductor plans

Zoho has suspended its semiconductor chip manufacturing plans. It had planned to invest about $700 million to establish semiconductor manufacturing facilities. The company was unable to find the right technology partner for its semiconductor businesses, Reuters reported.

Sridhar Vembu, Zoho’s founder, said in a post on X that the semiconductor manufacturing business is very capital-intensive and requires backing from the government as well. He said that they wanted to be certain of their technology capabilities before taking the taxpayers’ money from the government.  

ALSO READApril manufacturing growth soars to 10-month highs led by exports, consumer good; pace of hiring gains momentum too

“We did not have that confidence in the tech so our board decided to shelve this idea for the time being, until we find a better tech approach.”, Vembu added in the post of X. 

Zoho announced its foray into semiconductor manufacturing in April last year. As per Reuters, the company had established a separate division for the same purpose, hired people, and formed a board. 

Earlier in December, the Karnataka government announced that it had given Zoho the necessary approval to set up a manufacturing facility in Mysore. The project was estimated to cost $400 billion.  

India’s semiconductor dreams: Current situation

Last year, the government announced it plans to invest $15 billion to create a semiconductor manufacturing ecosystem in India. The government set a timeline of 4-6 years to invest the capital at various phases. In the proposed plan, the government aimed to provide an incentive of 50 to 70 percent of the project cost.  In the budget for 2024 and 2025, the government allocated Rs 6903 and 7000 crore for the same.

After the announcement from the government, many prominent Indian companies have invested in the semiconductor industry. The prominent Indian companies like Tata, Vedanta, Adani, HCL, and Murugappa Group have announced their plans to invest in setting up chip manufacturing facilities. 

A joint venture between Indian companies and global semiconductor players like Micron, Samsung, Foxconn, Tokyo Electron, AMD, and Intel is the key to the successful execution of these proposed plans. Many indian companies are at different stages of facility establishment and joint venture negotiations. 

Falling of Zoho’s semiconductor manufacturing plans is a bad sign for the emerging industry.

 » Read More

Related Articles

Income tax rules 2025: Govt revises perk taxation with new Rs 4 lakh and Rs 8 lakh thresholds

The government has notified the income tax rules, under which two new tax limits have been fixed on perquisites (non-salary benefits) given by the employer to the employees. These changes will especially affect those employees whose income is low or who get different types of facilities from the employer. The amendment notified on 18th August

Why has CBI booked Anil Ambani, Reliance Communications in Rs 2,929 crore bank fraud case?

The Central Bureau of Investigation (CBI) on Saturday registered a case against industrialist Anil Ambani and carried out searches at his residence as well as the premises of Reliance Communications Ltd. in connection with an alleged bank fraud that caused a loss of over ₹2,929 crore to the State Bank of India (SBI). ALSO READBank

Tata Capital IPO countdown: What happens if RBI’s listing deadline is missed?

All eyes are on the Tata Capital IPO. This Tata Group company has to mandatorily list its shares on the stock exchanges by September 30, 2025. This is as per a Reserve Bank of India (RBI) directive that mandates that after being identified as an NBFC upper layer, the company needs to be listed within

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Income tax rules 2025: Govt revises perk taxation with new Rs 4 lakh and Rs 8 lakh thresholds

The government has notified the income tax rules, under which two new tax limits have been fixed on perquisites (non-salary benefits) given by the employer to the employees. These changes will especially affect those employees whose income is low or who get different types of facilities from the employer. The amendment notified on 18th August

Why has CBI booked Anil Ambani, Reliance Communications in Rs 2,929 crore bank fraud case?

The Central Bureau of Investigation (CBI) on Saturday registered a case against industrialist Anil Ambani and carried out searches at his residence as well as the premises of Reliance Communications Ltd. in connection with an alleged bank fraud that caused a loss of over ₹2,929 crore to the State Bank of India (SBI). ALSO READBank

Tata Capital IPO countdown: What happens if RBI’s listing deadline is missed?

All eyes are on the Tata Capital IPO. This Tata Group company has to mandatorily list its shares on the stock exchanges by September 30, 2025. This is as per a Reserve Bank of India (RBI) directive that mandates that after being identified as an NBFC upper layer, the company needs to be listed within

NRIs can lower TDS on sale of property with this one certificate

WHENEVER A NON-RESIDENT Indian (NRI) sells a property, the buyer has to deduct tax on the gross sale consideration rather than on the actual taxable gains. However, there’s a way out to ensure that tax is withheld only on the real capital gains arising from the sale and not on the entire transaction value.  For this

Esports charts growth path with gaming Bill backing

After being formally separated from gambling-based segments, esports are now eyeing towards becoming a far more attractive proposition for mainstream corporate sponsors and institutional investors. Esports’ Rise vs. RMG’s Decline Esports, which traditionally depends on sponsorships and media rights, is now expected to grow fan-led monetisation through event ticketing, merchandise and digital engagement. Big brands