Indian software firm Zoho is making waves in the tech industry with its ambitious plan to venture into chipmaking. The company, known for its software and services, is seeking incentives from the Indian government for a proposed $700 million investment in chip fabrication.
Zoho, founded in 1996 and based in Tamil Nadu, is looking to manufacture compound semiconductors, which have specialized commercial applications and are made from alternative materials to traditional silicon. This move aligns with India’s push to bolster its semiconductor industry and compete on a global scale.
The proposal is currently under review by the IT ministry’s panel overseeing India’s chip initiatives. Zoho has reportedly identified a tech partner to assist in setting up the operation, signaling its commitment to this new venture.
While Zoho has not officially commented on the matter, founder and CEO Sridhar Vembu hinted at a chip design project in Tamil Nadu earlier this year. The company’s plans to diversify into chip manufacturing mark a significant shift in its business strategy.
With annual revenue exceeding $1 billion, Zoho is poised to make a significant impact in the semiconductor market. India’s semiconductor industry is projected to reach $63 billion by 2026, making it a lucrative opportunity for companies like Zoho to expand their operations.
This bold move by Zoho reflects the growing importance of semiconductors in the tech industry and underscores India’s ambition to become a key player in this sector. Stay tuned for more updates on Zoho’s foray into chipmaking and its potential impact on the market.