Indian software giant Zoho has halted its ambitious $700 million plan to venture into chip manufacturing, marking a setback for the country’s semiconductor aspirations. Reuters reports that the company struggled to secure a suitable technology partner to guide the intricate chipmaking processes. This development comes as another blow to India’s semiconductor ambitions, following a similar pause by Gautam Adani’s group in its $10 billion chip project.
Zoho, valued at approximately $12 billion, had intended to invest $400 million in a semiconductor facility in Karnataka, South India, as part of its diversification strategy. The company, known for providing cost-effective cloud-based software solutions, had received approval from the Karnataka government for the project, which was expected to create 460 jobs in the Mysuru region.