Zoho plans investment of $700 million to foray into chipmaking: report

Indian software firm Zoho is planning to foray into chipmaking business and is seeking investment from the federal government, as per the two sources possessing the direct knowledge of the proposal. One of the revealed that the investment plan is of $700 million.

The firm, which was established in 1996 and is currently headquartered in Tamil Nadu, is associated with offering software and related services on subscription to businesses in 150 countries, and is competing with the likes of Salesforce and Microsoft.

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Zoho has become the latest company to seek financial sweeteners from the government to set up a chip fabrication plant. Semiconductors are a key plank of India’s business agenda, with a $10 billion package in place, as it plans on to competing with countries such as Taiwan in few years.

The sources, as per moneycontrol, have also revealed that the firm is proposing to manufacture compound semiconductors, which have specialized commercial applications and are made from alternatives to the more- commonly used silicon in chipmaking.

The tech company’s proposal is being studied by the panel that drives the country’s chip initiatives at the IT ministry. The second source has claimed that the panel has requested the firm to share more details regarding the customers they intend to do business with.