Overview

• Zoho has suspended its $700 million semiconductor manufacturing plan, citing a lack of confidence in the chosen technology and insufficient government backing.
• The Karnataka government had approved a $400 million facility in Mysuru that would have created 460 jobs, marking a significant regional development opportunity now on hold.
• Indian conglomerate Adani Group has also paused discussions with Israel's Tower Semiconductor for a $10 billion project, further delaying India's chipmaking aspirations.
• India currently lacks any operational semiconductor fabrication facilities despite significant government incentives under the India Semiconductor Mission.
• These setbacks represent a challenge to Prime Minister Narendra Modi's vision of positioning India as a global semiconductor manufacturing hub.