Zoho Hits Pause on Semiconductor Ambitions: Awaiting Tech Confidence

Zoho Corporation delays its semiconductor fab venture due to uncertainty in technology options. The project, once approved by Karnataka for significant investment and job creation, is now on hold pending a more assured technological approach.

Zoho Corporation, a prominent IT entity, has opted to postpone its planned investment in a semiconductor fabrication unit, citing a lack of confidence in current technology options. The pause is intended to reassess the tech path, prioritizing taxpayer funds and strategic certainty.

Initially, Zoho pursued support through the India Semiconductor Mission and established Silectric Semiconductor Manufacturing, with intentions to lay the foundation of a compound semiconductor fab. The plan, which promised substantial economic and job growth, was approved by the Karnataka government in late 2024.

Zoho founder Sridhar Vembu disclosed via a social media post that the board's decision to defer came from the capital-intensive nature of the project, emphasizing the need for governmental backing before committing. The move underscores a strategic shift as Zoho awaits better technology solutions.

(With inputs from agencies.)