Zoho halts $700M semiconductor plan

Sridhar Vembu of Zoho announced the suspension of their semiconductor fab plans due to technological uncertainties, highlighting the capital-intensive nature of this industry and the need for government support. This reflects broader challenges in India's semiconductor ambitions amid geopolitical tensions, necessitating sustained R&D investment, talent retention, and strategic partnerships for future success. When Zoho’s founder Sridhar Vembu tweeted today, that his company had “shelved” its much-discussed semiconductor-fab plan for lack of confidence in the underlying technology, it was a rare moment of stark realism from one of India’s most optimistic entrepreneurs. “This business is so capital-intensive it requires government backing,” he wrote. “We did not have that confidence in the tech, so our board decided to pause—until we find a better approach.” That pause may sting for a firm that has long thrived on bootstrapping and self-reliance. Zoho was in talks with the Department o ... Read full article.