Overview

• Zoho has officially suspended its $700 million semiconductor manufacturing initiative due to a lack of confidence in the technology path and difficulty securing a suitable technology partner.
• The company's planned $400 million facility in Karnataka, which had received state approval in December 2024, is now on hold indefinitely.
• Sridhar Vembu, Zoho's co-founder, emphasized the capital-intensive nature of chip fabrication and the need for government backing before utilizing taxpayer funds.
• India's semiconductor aspirations face further challenges as the Adani Group halts discussions with Tower Semiconductor on a $10 billion chip project.
• The setbacks highlight broader systemic issues, including high capital requirements and the absence of operational chip fabrication facilities in India.