Indian software company Zoho is reportedly planning to venture into chip manufacturing and is seeking incentives from the federal government, according to two sources familiar with the proposal. One of the sources indicated that the investment plan could amount to $700 million.
Founded in 1996 and headquartered in Tamil Nadu, India, Zoho provides software and related services on a subscription basis to businesses in 150 countries, competing with major players like Microsoft and Salesforce.
Zoho is among the latest companies to seek financial incentives from the government to establish a semiconductor fabrication plant. Semiconductors play a crucial role in India’s business agenda, with the government implementing a $10 billion package to boost the industry and position India as a competitor to countries like Taiwan in the coming years.
The proposed venture by Zoho focuses on manufacturing compound semiconductors, which have specialized commercial applications and are made from materials other than silicon, commonly used in chip manufacturing.
The proposal is currently under review by the panel responsible for driving India’s chip initiatives at the Ministry of Information Technology. The ministry has requested further clarification from Zoho regarding the intended customer base for the venture.
According to the first source, Zoho has estimated an investment of $700 million for this venture and has also identified a technology partner to assist in setting up the operation from scratch, although the name of the partner was not disclosed.
