Indian software giant Zoho is planning a $700 million investment in semiconductor manufacturing, according to two sources familiar with the proposal.
The Chennai-based firm, which provides global cloud software and services to businesses, is seeking incentives from the Indian government to set up a plant to produce compound semiconductors. Compound chips use materials other than silicon and have specialized commercial applications.
Zoho's proposal is currently being reviewed by the IT ministry panel overseeing India's semiconductor initiatives. The ministry has requested more details from Zoho on its intended chip customer base.
The move comes as India aims to establish itself as a semiconductor hub. A $10 billion incentive program will attract chipmakers and reduce reliance on imports. One source said Zoho had identified a technology partner to help establish the chipmaking operation from the ground up.
Zoho declined to comment on the matter, however, the company's founder and CEO, Sridhar Vembu, had announced plans for a chip design project in Tamil Nadu in March without providing further details.
Zoho reported over $1 billion in annual revenue for the financial year ending March 2023, according to media reports. In February, the Indian government approved over $15 billion in investments by companies like Tata Group and CG Power to set up semiconductor plants for sectors like defence and automobiles.
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