Overview
- Zoho has suspended its $700 million semiconductor manufacturing initiative after failing to secure a suitable technology partner.
- Co-founder Sridhar Vembu confirmed the decision, emphasizing the need for confidence in the technology path before utilizing taxpayer funds.
- The Karnataka government had approved Zoho's $400 million facility in Mysuru, projected to create 460 jobs, marking a setback for the region's industrial growth.
- India's broader semiconductor ambitions face hurdles, with Adani Group also pausing its $10 billion chip project due to similar concerns.
- Despite $15 billion in government incentives under the India Semiconductor Mission, the country still lacks an operational chip fabrication unit.