Zoho Pulls the Plug: $700 Million Chip Dream Stalls-What’s Next for India’s Semiconductor Ambitions?

Indian software giant Zoho has suspended its ambitious $700 million plan to enter the chip manufacturing sector, sources revealed on Thursday, dealing a fresh blow to India’s goal of becoming a global semiconductor hub. The year-long initiative, which would have included a $400 million semiconductor facility in Karnataka, has been put on hold after Zoho failed to secure a suitable technology partner to navigate the complex world of chip fabrication.

 

Zoho’s withdrawal comes at a time when the Indian government is actively courting investment in semiconductor manufacturing, aiming to reduce dependence on imports and boost domestic capabilities. The company, valued at $12 billion and known for its affordable cloud-based software, had envisioned its foray as a significant step toward technological self-reliance. The Karnataka project alone was expected to generate 460 jobs and would have been the state’s first such facility.

 

Despite extensive efforts, Zoho was unable to find a partner with the technical expertise required for the project. The company’s decision follows similar pauses by other major Indian conglomerates in the sector. It remains unclear if Zoho will revisit its chipmaking plans in the future should the right partner emerge.

 

Source: Reuters