Zoho plans $700 mn foray into chipmaking
New Delhi, May 16
Indian software firm Zoho is planning a foray into chipmaking and seeking incentives from the Centre, two sources with direct knowledge of the proposal said, with one of them pegging the investment plan at $700 million.
Headquartered in Tamil Nadu, Zoho offers software and related services in 150 countries, competing with the likes of Microsoft and Salesforce.
Centre’s $10 bn push
- Semiconductors are a key plank of the Centre, with a $10 billion package in place to boost the industry to help it compete with countries like Taiwan
- Tata Group and CG Power have already got the go-ahead to construct three semiconductor plants worth over $15 billion
Zoho is proposing to manufacture compound semiconductors, which have specialised commercial applications and are made from alternatives to the more-commonly used silicon in chipmaking, the two sources said.
The proposal is being reviewed by a panel at the IT ministry, they added. Zoho declined to comment, while the IT ministry did not immediately respond to a request.
The first source, who said the company had estimated an investment outlay of $700 million, said Zoho had also identified a tech partner to help set up the operation from scratch, without naming the firm.
In March, founder and CEO Sridhar Vembu said Zoho was planning a chip design project in Tamil Nadu, without providing further details. India has estimated its semiconductor market will be worth $63 billion by 2026. — Reuters
