Business

Zoho Halts $700 Million Chip Project Over Tech Doubts, Seeks Better Path

Zoho Corporation has shelved its $700 million semiconductor chip manufacturing project, citing lack of confidence in the current technology. Co-founder Sridhar Vembu announced the decision on Thursday, stating that the company is pausing the plan “until we find a better tech approach.”

Vembu explained that chip fabrication is a capital-heavy venture requiring strong government support. “We wanted to be absolutely sure of the technology path before we take taxpayer money. We did not have that confidence in the tech,” he wrote on X.

In June last year, Zoho applied for incentives under the Centre’s Rs 76,000 crore India Semiconductor Mission (ISM). The company had created a new unit, Silectric Semiconductor Manufacturing, to lead the project and had also proposed a chip design unit in Tenkasi, Tamil Nadu.

Zoho’s Strategic Shift

Vembu, who moved to Tenkasi in 2019 and stepped down as CEO in January 2025 to become chief scientist, emphasised Zoho’s responsibility in using public funds wisely.

Founded in 1996 as AdventNet and rebranded as Zoho Corporation in 2009, the firm offers SaaS-based business solutions globally.

Despite stepping back from chip manufacturing, Zoho remains committed to innovation, with Vembu signalling a continued focus on technological research and development.

Also Read: GST Collections Hit Record ₹2.37 Lakh Crore In April, Signal Strong Economic Activity

Ajaypal Choudhary

Recent Posts

PM Modi To Inaugurate ₹8,900 Crore Vizhinjam Port, India’s First Transhipment Hub

Suresh Babu, former MD and CEO of Vizhinjam International Seaport Limited, praised Adani. He said…

2 hours ago

US Stands In Solidarity With India, Supports The Right To Defend Itself: Pete Hegseth

According to the Ministry of Defence, Hegseth conveyed deep condolences on behalf of the US…

3 hours ago

GST Collections Hit Record ₹2.37 Lakh Crore In April, Signal Strong Economic Activity

Goods and Services Tax (GST) collections rose 12.6 per cent year-on-year to a record ₹2.37…

4 hours ago

HM Amit Shah Vows Retribution For Pahalgam Terror Attack

Addressing an event in Assam, HM Shah condemned the attack as a 'cowardly act' and…

4 hours ago

PM Modi Highlights ‘Creative Responsibility’ In A Technology-Driven World

PM Narendra Modi inaugurated the World Audio Visual and Entertainment Summit (WAVES) 2025 in Mumbai.

4 hours ago

Adobe Unveils Strategic Initiatives At Waves 2025 To Empower India’s Creative Economy

At the inaugural World Audio Visual & Entertainment Summit (WAVES) 2025 in Mumbai, Adobe announced…

6 hours ago