Zoho, led by co-founder Sridhar Vembu, has submitted an application to the government for the establishment of a semiconductor manufacturing facility in India, signaling its ambition to contribute to the country’s emergence as a key player in the global supply chain..
Application Details and Partnership
Vembu confirmed the application, stressing the rigorous evaluation process but refrained from disclosing specific details regarding the proposed venture or its partner.
Media Reports and Investment Proposal
Recent media reports have hinted at Zoho’s interest in entering the chip-making sector, with speculations suggesting a planned investment of $700 million alongside requests for government incentives.
Joining the Semiconductor Race
Zoho joins a growing list of companies seeking government support to venture into the semiconductor industry, aligning with India’s broader objective of nurturing a domestic semiconductor manufacturing ecosystem.
Government Incentives and Existing Facilities
India has already approved four semiconductor chip manufacturing and assembly plants, with the Tata Group-PSMC Group joint venture spearheading one of the manufacturing units.
Economic Strategy and Response to Layoffs
Vembu criticized the trend among global tech companies to resort to layoffs solely to maintain profit margins, emphasizing the importance of preserving employee morale and loyalty, which Zoho prioritized by refraining from layoffs even during the pandemic.
Zoho’s Business Landscape and Future Plans
With a workforce of over 15,000 employees worldwide, Zoho continues to innovate across its suite of business applications, recently integrating AI features to enhance productivity. Additionally, the company is venturing into manufacturing handheld tools in Tamil Nadu, aiming to create rural employment opportunities and curb migration.
Vision for the Future
Vembu underscored the importance of sustainable growth, cautioning against the rush to adopt AI technologies without considering long-term implications, while emphasizing Zoho’s commitment to fostering rural development and job creation.
In conclusion, Zoho’s foray into semiconductor manufacturing reflects its strategic vision to leverage India’s burgeoning tech landscape and contribute to the country’s journey towards self-reliance in critical industries.
