Indian software firm Zoho is planning to enter the chip industry and has approached the government for incentives, as per a report by Reuters. The investment plan is around $700 million.
Established in 1996 and based in Tamil Nadu, India, Zoho competes with companies like Microsoft and Salesforce by providing software and related services to businesses in 150 countries through subscription.
India has been working extensively on the semiconductor front. Recently, Minister of Communications, IT, and Railways Ashwini Vaishnaw said that in the next five to six years, India will be one of the top semiconductor manufacturers in the world.
Read: If Zoho Wants To Monopolise, Govt Should Not Allow Us: Sridhar Vembu
Under India's semiconductor subsidy scheme, the country has provided financial support to four projects to date. Following Micron's ATMP facility in Gujarat, subsidy approvals were granted earlier this year to two projects by Tata Electronics and an ATMP proposal by India-based CG Power in collaboration with Japan-based Renesas.
Zoho did show interest in the semiconductor industry in the past as well. In March, as per a report by businessline, Zoho’s co-founder and CEO, Sridhar Vembu, took to X (formerly Twitter) and mentioned that the company wants to set up a semiconductor facility in the rural part of Tamil Nadu, Tenkasi. He wrote, “We have been planning a semiconductor design project in Tenkasi. Ananthan’s expertise in this field is unrivaled, and we will work together to create advanced chip design know-how in this rural region.”
Vembu wrote this while reacting to a post by Ananthan Ayyasamy, Tenkasi’s resident, a former employee of Intel, as well as the president of the Tamil Nadu BJP’s start-up cell. Ayyasamy had written, “I will work wholeheartedly to ensure the success of our alliance in Tenkasi. I will also continue to work hard to bring technology-driven prosperity to our region.”
However, the company has declined to comment on the development as of now. Talking to X, Vembu highlighted that the company is not ready to disclose any announcement yet. “All I can say right now is that this technology is vital for our nation, and we need companies to step up and make the investment. The government is very supportive, and now is the time,” said Zembu.
While highlighting that the nation needs to step up investment in industrial R&D, with industry and academia working together to figure out all the complex technologies that underpin economic prosperity, Vembu said that his personal aim is to combine R&D focus with rural development.
