Zoho Shelves $700 Mn Semiconductor Plan, Sridhar Vembu Unsure About Tech

A year after announcing its entry into the semiconductor industry, zoho has put its $700 million chip-making plan on hold.

Zoho's Chief Scientist Sridhar Vembu shared the update on the social media platform X.

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“On our semiconductor fab investment plan, since this business is so capital intensive it requires government backing, we wanted to be absolutely sure of the technology path before we take taxpayer money,” he said. 

“We did not have that confidence in the tech so our board decided to shelve this idea for the time being, until we find a better tech approach,” Vembu added. 

Zoho has paused its chip-making plans for now as it looks for better technological support.

According to a Reuters report, the company is struggling to find the right tech partner for the complex project. Last May, Zoho announced its entry into semiconductor manufacturing and had applied for government incentives. 

Its $400 million chip facility planned in Mysuru—which got approval from the Karnataka government and was expected to create 460 jobs—has also been put on hold.

This comes at a time when India is pushing to boost local chip production. Meanwhile, the Adani Group has also reportedly paused talks on its $10 billion chip venture with Israel's Tower Semiconductor, citing concerns over the project's strategic and commercial feasibility.

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