Indian tech firm Zoho halts $700 million chip production project, reportingedly encountering further setbacks
NEW DELHI: Indian software titan Zoho has put the brakes on a whopping $700 million plan to dive into the world of chip manufacturing, confides sources in the know. The reasons? A troublesome search for the perfect technology partner skilled in the intricate dance of chip creation.
It seems Zoho encountered quite a roadblock in locating a partner with the expertise to steer them through the complexities of chip manufacturing. One source shared the woe, stating, "Despite an extensive search, Zoho couldn't find a tech partner."
Ironically, incidents like these cast a shadow on Prime Minister Narendra Modi's persistent endeavor to transform India into a global powerhouse for chip manufacturing. As it stands, the nation has yet to boast a single operational chipmaking facility.
Backed by billions, Zoho offers cost-effective alternatives to cloud-based software services offered by giants such as Microsoft. The firm's billionaire co-founder, Sridhar Vembu, is renowned for his wayward yet effective approach to setting up businesses in rural areas.
Planning to diversify its portfolio, Zoho eyed a $400 million investment in a semiconductor facility in Karnataka state, south India. However, it appears the technology needed for such a venture was too much to stomach for Zoho.
In an effort to keep its technological edge, Vembu voiced the significance of the tech. Still, the lack of a suitable partner and uncertainty about the success of the venture made Zoho hesitant to plunge in.
Although the chip manufacturing plan has been temporarily shelved, Zoho maintains a say-so on whether they'll revive the idea if a suitable partner arises in the future.
As for the government, time will tell if they can secure the technology partnerships needed to turn their ambitious semiconductor dreams into reality.
- Zoho's valuation of venturing into chipmaking was estimated at $700 million, but the search for a skilled technology partner stumped their plans.
- Despite Zoho's resourceful co-founder, Sridhar Vembu, and their cost-effective cloud-based software services, their search for a technology partner in chipmaking failed.
- In an attempt to diversify its portfolio, Zoho planned to invest $400 million in a semiconductor facility in Karnataka, but the intricacies of chip creation were too challenging for them.
- Vembu acknowledged the technology's importance, but the absence of a suitable partner and the venture's uncertainty led Zoho to hold off on investing in chipmaking.
- The government will need to secure suitable technology partnerships to actualize their dreams of India becoming a global authority in chip manufacturing.
