India’s Zoho Plans $700 Million Foray into Chipmaking

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Indian software firm Zoho is planning a significant venture into chipmaking, with an investment plan pegged at $700 million, according to two sources with direct knowledge of the proposal. Zoho, which was established in 1996 and is headquartered in Tamil Nadu, offers subscription-based software and related services to businesses in 150 countries, competing with giants like Microsoft and Salesforce.

The company is the latest to seek financial incentives from the Indian government to set up a chip fabrication plant. Semiconductors are a key focus of India’s business agenda, supported by a $10 billion package aimed at boosting the industry and positioning the country to compete with semiconductor leaders such as Taiwan.

Zoho has not publicly commented on the proposal, and the IT ministry has yet to respond to inquiries. One source revealed that Zoho had identified a technological partner to help establish the operation but did not disclose the partner’s name.

In March, Zoho founder and CEO Sridhar Vembu mentioned plans for a chip design project in Tamil Nadu, though he did not provide further details. The company’s diversification into chip manufacturing has not been previously reported.