Zoho halts $700 million chip manufacturing plan

06-May-2025

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Indian software firm, Zoho, has decided to pause its ambitious chipmaking project worth $700 million, its co-founder confirmed on May 1, backing what Reuters had reported. 

The move comes as a setback not just for the company, but also to India’s bigger dream of becoming a global hub for semiconductors.

Zoho even aimed to set up a $400 million semiconductor plant in Karnataka. But the company couldn’t find the right technology partner to guide them through the complex process of chip production, stated one of the sources.''

Zoho’s CEO Sridhar Vembu also shared a post on X confirming the development.

He wrote on X, “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.”

“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,” he added.