Indian software firm Zoho is set to venture into chipmaking with a proposed investment of $700 million, according to Reuters.
Established in 1996 and headquartered in India’s Tamil Nadu, Zoho offers software and related services to businesses in 150 countries, positioning itself among competitors like Microsoft and Salesforce.
Zoho’s move into chip manufacturing aligns with India’s focus on semiconductor development, with a $10 billion package aimed at bolstering the industry to rival global leaders like Taiwan. The company aims to produce compound semiconductors, which have specialized commercial applications and utilize alternatives to traditional silicon.
The proposal is currently under review by the panel overseeing India’s chip initiatives at the IT ministry, with requests for further clarity on Zoho’s intended customer base. While Zoho has declined to comment, sources indicate that the company has identified a technology partner to facilitate the setup of its chip manufacturing operation.
Founder and CEO Sridhar Vembu previously hinted at Zoho’s chip design project in Tamil Nadu, indicating the company’s intention to diversify its offerings. Zoho, which reported annual revenue exceeding $1 billion in the financial year ending March 2023, joins a growing list of firms investing in India’s semiconductor industry.
In February, India approved the construction of three semiconductor plants valued at over $15 billion by firms including Tata Group and CG Power. These initiatives aim to manufacture chips for various sectors, including defense, automobiles, and telecommunications, contributing to India’s estimated $63 billion semiconductor market by 2026.
