Zoho Halts $700M Chip Manufacturing Pursuit Amid Partner Challenges

Indian software firm Zoho has paused its $700 million chip manufacturing expansion due to difficulties in finding a technology partner. This move aligns with other Indian companies halting semiconductor plans and poses a setback for the government's goal to make India a chip manufacturing hub.

Indian software giant Zoho has decided to halt its ambitious $700 million plan to venture into the semiconductor manufacturing industry. This decision, confirmed by the company's co-founder, comes as a setback for India's aspirations to become a global player in chip production.

The initiative floundered after Zoho struggled to secure a technology partner capable of advising on the complexities of chipmaking. The decision was made following internal skepticism about the viability of the technology, in a capital-intensive industry requiring governmental support.

As other Indian firms, such as Gautam Adani's group, also pause their semiconductor ambitions, India's quest to establish itself as a chipmaking hub faces hurdles. Prime Minister Modi's aspiration to attract global semiconductor projects continues amid these challenges.

(With inputs from agencies.)