Latest news with #SilectricSemiconductorManufacturing
India Today
02-05-2025
- Business
- India Today
Zoho halts $700 million chip manufacturing plan. Here's why
Indian software firm, Zoho, has decided to pause its ambitious chipmaking project worth $700 million, its co-founder confirmed on Thursday, backing what Reuters had reported. The move comes as a setback not just for the company, but also to India's bigger dream of becoming a global hub for even aimed to set up a $400 million semiconductor plant in Karnataka. But the company couldn't find the right technology partner to guide them through the complex process of chip production, stated one of the following the Reuters report, Zoho's CEO Sridhar Vembu also shared a post on X confirming the development. He wrote on X, 'On our semiconductor fab investment plan, since this business is so capital intensive it requires government backing, we wanted to be absolutely sure of the technology path before we take taxpayer money.''We did not have that confidence in the tech so our board decided to shelve this idea for the time being, until we find a better tech approach,' he added. Vembu has stated that since chipmaking is very costly and needs government support, the company didn't want to move ahead unless they were sure about the technology, especially when taxpayer money is had already set up a team under the name Silectric Semiconductor Manufacturing and had started hiring. The Karnataka government had even approved the plan last December, calling it a landmark project that would have created 460 jobs in the Mysuru region, according to the Adani Group has also paused its $10 billion chip project with Israel's Tower Semiconductor, after reviewing it internally, reported Reuters on Watch
India.com
01-05-2025
- Business
- India.com
Bad news for employees of this Indian company as it drops $700m chipmaking venture due to…, jobs will now be…, not Narayana Murthy's Infosys, Ratan Tata's TCS
Narayana Murthy, Late Ratan Tata and Azim Premji- File image (Left to right) Zoho news: In a significant setback for employees of Zoho and the Indian economy, Zoho CEO Sridhar Vembu has shelved $700 million chip plan. The co-founder of the software major company Sridhar Vembu put its ambitious $700 million semiconductor chip manufacturing project on hold. Sridhar said that they were not confident enough in the current technology path to proceed. Additionally, Vembu explained that since chip fabrication is a highly capital-intensive business, it needs strong government support. 'On our semiconductor fab investment plan, since this business is so capital intensive, it requires government backing, we wanted to be absolutely sure of the technology path before we take taxpayer money,' Vembu wrote on X social media platform. As a result of the move, various jobs in the industry will be impacted. Vembu added that they did not have that confidence in the tech so the board decided to shelve this idea for the time being, 'until we find a better tech approach'. 'We wanted to be absolutely sure of the technology path before we take taxpayer money. We did not have that confidence in the tech, so our board decided to shelve this idea for the time being,' Vembu mentioned, explaining the company's decision to suspend the plan, as per a report y The Tamil Nadu-based software firm had, in June last year, applied for incentives under the central government's Rs 76,000 crore India Semiconductor Mission (ISM). It had also set up a new entity called Silectric Semiconductor Manufacturing to lead the fabrication unit initiative. Before applying under ISM, Zoho had also announced plans to establish a semiconductor design project in Tenkasi, Tamil Nadu, where the company is headquartered. In January this year, Vembu stepped down as the CEO to serve as the company's chief scientist. Zoho offers software and related services on subscription to businesses in several countries. In 1996, Vembu founded a software development house for network equipment providers called AdventNet, which was renamed Zoho Corporation in 2009, focusing on providing SaaS support to customer relationship management services. Vembu moved to Tenkasi in Tamil Nadu in 2019. (With inputs from agencies)
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Business Standard
01-05-2025
- Business
- Business Standard
Zoho shelves $700-mn semiconductor chip plant plan: Sridhar Vembu
Tamil Nadu-based software-as-a-service major Zoho Corporation has suspended its plan to build a $700-million compound semiconductor fabrication plant, the company's founder Sridhar Vembu said. 'On our semiconductor fab investment plan, since this business is so capital-intensive, it requires government backing. We wanted to be absolutely sure of the technology path before we take taxpayer money. We did not have that confidence in the tech, so our board decided to shelve this idea for the time being, until we find a better tech approach,' Vembu said on social media site X (formerly Twitter). In June last year, the company had applied for government incentives under the India Semiconductor Mission (ISM) to build a compound semiconductor chip fabrication unit. The SaaS firm also formed a new company, Silectric Semiconductor Manufacturing, for this purpose. Before applying for incentives to build a chip fabrication unit under ISM, Vembu had also announced Zoho's plans to set up a semiconductor design project at Tenkasi in Tamil Nadu. The ₹76,000 crore ISM incentive plan, which aimed to kickstart semiconductor chip manufacturing and packaging in the country, has tasted success and so far seen five applications being approved. Four of these ISM-approved projects are chip packaging units, while Tata Electronics is the sole chip fabrication unit so far. The Tata Group's Dholera semiconductor unit is the first and only chip fabrication facility in India, which was approved by the central government on February 29, 2024, under the ambitious India Semiconductor Mission (ISM). The plant is expected to start operations by 2027 and may employ close to 2,000 people overall. The chip fabrication unit in Dholera is coming up at a cost of more than ₹91,000 crore.
