Zoho Ventures Into Chipmaking With A $700 Million Investment Plan

In a bold move, software giant, Zoho, is set to make an entry into the chipmaking industry with a proposed investment of $700 million.

What Happened: According to a Reuters report on Sunday, Zoho is planning a venture into the chipmaking sector. The company is reportedly seeking incentives from the federal government for this venture, with the investment plan estimated at $700 million.

Established in 1996, Zoho, based in Tamil Nadu, India, is a formidable competitor to tech giants like Microsoft and Salesforce, offering software and related services to businesses in 150 countries.

See Also: Amazon Flipkart And Myntra Face New Mandate To Stop Fake Reviews: Here’s How It Affects You

As per the report, Zoho’s proposal to manufacture compound semiconductors, a potential alternative to silicon in chipmaking, is currently under scrutiny by the panel that oversees India’s chip initiatives at the IT ministry. The ministry has requested Zoho to provide more details about the customers it plans to cater to.

India, in a bid to compete with countries like Taiwan, has a $10 billion package to boost the semiconductor industry. Zoho’s plans to diversify into chip manufacturing have not been previously reported.

In March, Zoho’s founder and CEO, Sridhar Vembu, announced plans for a chip design project in Tamil Nadu. The company, which generated over $1 billion in revenue in the financial year ending March 2023, has also identified a tech partner to assist in setting up the operation, without disclosing the firm’s name.

Read Next: HAL’s Bumper Q4 Earnings Send Shares Flying 10%

Engineered by Benzinga Neuro, Edited by Utkarsh Roshan

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: TechZoho