"Zoho’s Sridhar Vembu Eyes Semiconductor Market with $700 Million Investment"

Sridhar Vembu, co-founder and CEO of Chennai and US-based Zoho Corporation, is reportedly preparing to venture into the semiconductor industry with an investment plan of approximately $700 million, according to Reuters. While Zoho has not officially commented on the development, an unnamed official suggested the move aligns with Vembu’s previous statements about his interest in semiconductors.

Reuters reported that Zoho has approached the Central Government for incentives and has identified a potential partner for the venture. This initiative comes at a strategic time as the Indian government aims to establish the country as a major semiconductor hub. The Tata Group has already made significant strides, with other conglomerates like Vedanta also preparing to enter the industry.

“We are not ready to announce anything yet regarding the semiconductor fab news. All I can say right now is that this technology is vital for our nation, and we need companies to step up and make the investment. The government is very supportive, and now is the time,” an official said.

Zoho, known for providing software and related services on a subscription basis to businesses in nearly 150 countries, competes with global giants such as Microsoft and Salesforce.

In March, Vembu expressed his desire to establish a semiconductor design project in rural Tenkasi, located in southern Tamil Nadu. He hinted at this plan in a post on X (formerly Twitter) while responding to a post by Ananthan Ayyasamy, a former Intel employee and president of the Tamil Nadu BJP’s start-up cell.

“I will work wholeheartedly to ensure the success of our alliance in Tenkasi. I will also continue to work hard to bring technology-driven prosperity to our region,” Ananthan stated in his post.

Vembu replied, “We have been planning a semiconductor design project in Tenkasi. Ananthan’s expertise in this field is unrivaled, and we will work together to create advanced chip design knowhow in this rural region.”

Ananthan Ayyasamy, also known as Tenkasi Ananthan, is a semiconductor expert who left a successful career at Intel in the US to revitalize Tenkasi. Through ‘Start-up Tenkasi’ and various infrastructural projects, he aims to foster economic growth and technological innovation in the region. He holds degrees from NIT Trichy and Arizona State University (ASU), with several patents in semiconductor design.

HBL