Zoho announces $700M plan to enter chip manufacturing

  • Zoho Corporation announces $700 million investment into chip manufacturing, marking a significant strategic shift towards hardware production.
  • This move reflects India’s broader ambitions to enhance its semiconductor capabilities, reduce dependency on imports, and foster indigenous innovation, aligning with the country’s goals of technological self-reliance.

Zoho Corporation, one of India’s leading software companies, has announced an ambitious venture into chipmaking and revealed plans to invest a staggering $700 million into this effort.

Strategic diversification

Zoho, renowned for its suite of cloud-based business applications, is now setting its sights on the semiconductor industry, a sector traditionally dominated by global giants. This strategic shift underscores India’s growing aspirations to bolster its semiconductor capabilities and reduce reliance on imports, especially in the wake of global supply chain disruptions.

The announcement comes amid increasing efforts by governments worldwide to strengthen domestic semiconductor industries, recognising the pivotal role these chips play in powering everything from smartphones to automobiles to critical infrastructure.

Founder and CEO of Zoho Corporation, Sridhar Vembu, expressed his vision for the company’s foray into chipmaking, stating, “Our goal is to build chips that are specifically tailored to power our software platforms efficiently. By controlling the entire stack, from hardware to software, we aim to optimise performance and deliver unparalleled user experiences.”

Zoho’s entry into chip manufacturing signifies a departure from its traditional software-centric business model. However, industry experts view this move as a natural evolution for the company, leveraging its expertise in cloud computing and software development to innovate in hardware.

The $700 million investment will be allocated towards establishing state-of-the-art semiconductor fabrication facilities, research and development initiatives, and talent acquisition. Zoho aims to develop a range of semiconductor products optimised for its cloud-based applications, potentially disrupting the market with tailored solutions tailored to its software ecosystem.

Also read: Tesla starts producing next generation semiconductors

Also read: 5 best semiconductor companies

India’s technological ambitions

India’s semiconductor industry has long been overshadowed by global players, primarily located in East Asia and the United States. However, recent government initiatives such as the Production Linked Incentive (PLI) scheme have incentivised domestic manufacturing, fostering a conducive environment for companies like Zoho to enter the fray.

The move also aligns with India’s broader ambitions to become a global hub for electronics manufacturing, bolstering the nation’s self-reliance and fostering innovation-driven growth.

Zoho’s venture into chipmaking is poised to catalyse India’s semiconductor ecosystem, driving technological innovation, job creation, and economic growth. As the company embarks on this bold journey, all eyes are on Zoho to see how its investment will shape the future of Indian technology.


Coco Zhang

Coco Zhang, an intern reporter at BTW media dedicated in Products and AI. She graduated from Tiangong University. Send tips to k.zhang@btw.media.

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