Zoho applies for licence as it earmarks $200 mn for semiconductor fab

Zoho, a Chennai-based software company known for its cloud-based business applications, is making a significant move into the hardware sector. Zoho has applied for a licence to build a compound semiconductor fabrication plant, besides earmarking $200 million for the project. The Zoho compound fab project could reportedly attract around $600 million in net investment, and will involve a technology partner.

Zoho is also hoping that the government will finance the project equally under the compound semiconductor manufacturing scheme. CEO Sridhar Vembu stated they await government clearance and will announce formally once approved.

The project aims to manufacture Silicon Carbide (SiC) chips in Tamil Nadu, licensing technology from Scotland’s Clas-SiC. Zoho is the third company to apply for such a license in India.

The Indian government offers subsidies for compound semiconductor fabs, covering 50% of capital expenditure if applicants meet specific criteria. This support is part of a broader program to develop India’s semiconductor and display manufacturing ecosystem.

Silicon carbide chips are crucial for electric vehicles (EVs). Zoho's initiatives align with India's push for advanced technology and manufacturing capabilities.

It will be interesting to see how Zoho's foray into chip manufacturing unfolds. Their application process and the potential government support will be key factors to watch.