Tuesday, May 28, 2024

Zoho from India to Invest $700 Million in Chipmaking Expansion

Indian Software Firm Zoho Planning for Chipmaking Venture, Seeks Government Incentives

Indian software firm Zoho is set to make a bold move into chipmaking, with plans to invest $700 million in the venture and seek incentives from the federal government. Zoho, known for its software and subscription services, is eyeing a foray into compound semiconductors, which have specialized commercial applications beyond traditional silicon chips.

The move comes as India looks to bolster its semiconductor industry, with a $10 billion package aimed at boosting domestic production to compete with global players like Taiwan. Zoho’s proposal is currently under review by the IT ministry, with questions about its target customers and plans for the new operation.

Zoho’s CEO, Sridhar Vembu, hinted at the chip design project earlier this year, and the company’s diversification into chip manufacturing marks a significant step in its growth trajectory. With annual revenue exceeding $1 billion, Zoho is poised to make a mark in the semiconductor market, projected to reach $63 billion by 2026 in India.

This move comes on the heels of India approving the construction of three semiconductor plants worth over $15 billion by major conglomerates like Tata Group and CG Power. With a focus on sectors like defense, automobiles, and telecommunications, India is positioning itself as a key player in the global semiconductor industry.

Zoho’s ambitious plans signal a new chapter in India’s tech landscape, with the potential to drive innovation and economic growth in the country. Stay tuned for more updates on Zoho’s chipmaking journey as it unfolds.

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