<p>New Delhi: Indian software firm Zoho has suspended its year-long pursuit of a $700 million plan to expand into chip manufacturing, its co-founder said on Thursday, confirming a Reuters story and dealing another blow to the Indian government's semiconductor plans.</p><p>Zoho struggled to find the right technology partner required to advise on complex chipmaking processes, one source familiar with the matter told <em>Reuters</em> earlier.</p><p>Reuters reported on Wednesday that Indian billionaire Gautam Adani's group has also paused discussions with Israel's Tower Semiconductor for its $10 billion chip project following an internal evaluation by the Indian group.</p><p>Zoho, valued at around $12 billion, offers cheaper alternatives to cloud-based software tools made by the likes of Microsoft. Its billionaire co-founder Sridhar Vembu is known for his popular and unconventional approach of locating business operations in rural villages.</p>.Mumbai airport rejects IATA claim on spot cuts, halt in cargo flights.<p>Vembu confirmed the decision after the Reuters story was published, saying "we did not have that confidence in the tech," in a social media post.</p><p>"Since this business is so capital intensive it requires government backing, we wanted to be absolutely sure of the technology path before we take taxpayer money," he said.</p><p>In a bid to diversify, Zoho had planned to invest $400 million in a semiconductor facility in Karnataka state in south India.</p><p>The entire chipmaking plan, first reported by Reuters in May 2024, has for now been suspended, two sources familiar with the matter told Reuters earlier, declining to be named.</p><p>Representatives for Karnataka state did not respond to a request for comment.</p><p>Zoho's retreat will be a setback to Prime Minister Narendra Modi who has for several years tried to lure companies in his pursuit to make India a global chip manufacturing hub.</p><p>India does not have a single operational chipmaking facility.</p><p>Zoho, established in 1996, offers software and related services on subscription to businesses in 150 countries and has over 18,000 employees and more than 120 million users.</p><p>Zoho's Silectric Semiconductor Manufacturing last year made a handful of hires and formed a board to oversee chipmaking efforts, the source who gave the reason for the failed plan said.</p><p>The Karnataka government said in December it had given landmark approval to Zoho's planned $400 million facility in Mysuru region, which would have generated 460 jobs and been the first such project in the state. </p>
<p>New Delhi: Indian software firm Zoho has suspended its year-long pursuit of a $700 million plan to expand into chip manufacturing, its co-founder said on Thursday, confirming a Reuters story and dealing another blow to the Indian government's semiconductor plans.</p><p>Zoho struggled to find the right technology partner required to advise on complex chipmaking processes, one source familiar with the matter told <em>Reuters</em> earlier.</p><p>Reuters reported on Wednesday that Indian billionaire Gautam Adani's group has also paused discussions with Israel's Tower Semiconductor for its $10 billion chip project following an internal evaluation by the Indian group.</p><p>Zoho, valued at around $12 billion, offers cheaper alternatives to cloud-based software tools made by the likes of Microsoft. Its billionaire co-founder Sridhar Vembu is known for his popular and unconventional approach of locating business operations in rural villages.</p>.Mumbai airport rejects IATA claim on spot cuts, halt in cargo flights.<p>Vembu confirmed the decision after the Reuters story was published, saying "we did not have that confidence in the tech," in a social media post.</p><p>"Since this business is so capital intensive it requires government backing, we wanted to be absolutely sure of the technology path before we take taxpayer money," he said.</p><p>In a bid to diversify, Zoho had planned to invest $400 million in a semiconductor facility in Karnataka state in south India.</p><p>The entire chipmaking plan, first reported by Reuters in May 2024, has for now been suspended, two sources familiar with the matter told Reuters earlier, declining to be named.</p><p>Representatives for Karnataka state did not respond to a request for comment.</p><p>Zoho's retreat will be a setback to Prime Minister Narendra Modi who has for several years tried to lure companies in his pursuit to make India a global chip manufacturing hub.</p><p>India does not have a single operational chipmaking facility.</p><p>Zoho, established in 1996, offers software and related services on subscription to businesses in 150 countries and has over 18,000 employees and more than 120 million users.</p><p>Zoho's Silectric Semiconductor Manufacturing last year made a handful of hires and formed a board to oversee chipmaking efforts, the source who gave the reason for the failed plan said.</p><p>The Karnataka government said in December it had given landmark approval to Zoho's planned $400 million facility in Mysuru region, which would have generated 460 jobs and been the first such project in the state. </p>