New Delhi— Zoho Corporation has shelved its ambitious $700 million semiconductor manufacturing project, citing concerns over the current technology path. Co-founder Sridhar Vembu announced the decision on Thursday, saying the company lacks the confidence to move forward, especially when government funding is involved.
“Since chip fabrication is so capital intensive, we wanted to be absolutely sure of the technology before accepting taxpayer money,” Vembu posted on X. “We didn’t have that confidence, so our board has decided to put the project on hold until a better tech approach emerges.”
The Tamil Nadu-based software company had applied for incentives under India’s ₹76,000 crore Semiconductor Mission last year and had set up a separate entity, Silectric Semiconductor Manufacturing, to lead the effort. Zoho also planned a semiconductor design center in Tenkasi, where the company is headquartered.
Vembu, who stepped down as CEO in January to become Zoho’s chief scientist, emphasized the importance of responsible use of public funds and technological clarity before proceeding with such large-scale ventures.
Founded in 1996 as AdventNet and rebranded as Zoho Corporation in 2009, the company is known for its suite of SaaS products used by businesses globally. Vembu relocated to Tenkasi in 2019, where he has championed rural development and tech innovation. (Source: IANS)
