Monday, July 15, 2024

Zoho CEO: Not Ready to Announce Chip Fabrication Unit Plans

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Zoho Founder and CEO, Sridhar Vembu, announced on Friday that the company is not yet ready to disclose any plans about potential investments in a semiconductor fabrication unit. Despite recent reports suggesting that Zoho is preparing to invest millions in a chip manufacturing and design plant, Vembu clarified that no official announcement is imminent.

Reacting to the rumors, Vembu posted on the social media platform X, “We are not ready to announce anything yet.” He emphasized the importance of this technology for the nation and the need for companies to invest in it. Vembu highlighted that the government is very supportive, making now the ideal time for such investments.

Earlier, sources said that Zoho is seeking incentives under the production-linked incentive (PLI) scheme for its proposed chip design and manufacturing facility. This move aligns with Zoho’s broader ambitions to expand into semiconductor technology.

Plans for Advance Chip Design Facility

In March, Vembu had revealed plans to establish an advanced chip design facility in Tenkasi district, Tamil Nadu. This initiative reflects Zoho’s commitment to advancing semiconductor technology within India.

In his post, Vembu stressed the need for increased investment in industrial research and development (R&D), urging collaboration between industry and academia to tackle the complex technologies essential for economic growth. He also expressed a personal mission to integrate R&D with rural development in a comprehensive manner.

Zoho Founder and CEO Sridhar Vembu.
Zoho Founder and CEO, Sridhar Vembu.

“Our nation needs to step up our investment in industrial R&D, with industry and academia working together to figure out all the complex technologies that underpin economic prosperity,” Vembu stated. He added, “I am sorry I cannot say more right now.”

Semiconductor Industry Context

According to the latest industry data, India’s current electronics manufacturing, valued at nearly $103 billion, creates a demand for semiconductors worth $26-$31 billion. The Indian government is actively promoting the semiconductor sector, with Prime Minister Narendra Modi laying the foundation stone for three semiconductor projects worth Rs 1.25 lakh crore in March this year.

Company’s headquarter in Chennai, Tamil Nadu.

While Zoho’s potential investment in a semiconductor fabrication unit remains unconfirmed, the company’s interest signals a significant step towards bolstering India’s technological capabilities. As the government continues to support such initiatives, the future of semiconductor manufacturing in India looks promising.

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