This Indian IT company is considering entering the chip-making industry

Indian mid-size IT firm Zoho is making headlines with its reported plans to venture into semiconductor manufacturing in the country. According to sources familiar with the matter, the company is in talks with the government to secure incentives and has proposed a $700 million investment for a chip manufacturing plant.

Zoho, based in Tamil Nadu, is known for providing software and services to businesses globally. The company is now looking to diversify its portfolio by entering the semiconductor market, specifically focusing on compound semiconductors. These chips have specialized commercial applications and are made from alternative materials to traditional silicon.

The IT ministry is currently reviewing Zoho’s proposal, with a focus on the company’s intended customer base. This move comes as part of India’s larger push to boost domestic semiconductor manufacturing, with the government recently approving the construction of three semiconductor plants worth over $15 billion.

Zoho’s founder and CEO, Sridhar Vembu, hinted at the company’s chip design project earlier this year, but the details were not disclosed until now. With an annual revenue exceeding $1 billion, Zoho is poised to make a significant impact in the semiconductor market, which is projected to reach $63 billion by 2026.

As Zoho joins the ranks of companies seeking to establish a foothold in India’s semiconductor industry, the tech world eagerly awaits further developments on this ambitious venture.