New Delhi, May 2(PTI) IT company Zoho Corporation has decided to shelve plans to invest in a semiconductor fab for the time being, with founder Sridhar Vembu citing a lack of confidence in the technology options.
Zoho had previously applied for government incentives under the India Semiconductor Mission (ISM) and had established Silectric Semiconductor Manufacturing for the project.
The plan included setting up a compound semiconductor fabrication unit, with significant investment and job creation expected.
In December 2024, the Karnataka government approved a slew of investment proposals for the state, including that of Silectric Semiconductor Manufacturing Private Limited's Rs 3,425.60 crore project at Kochanahalli, Mysuru, aimed at generating 460 jobs.
"On our semiconductor fab investment plan, 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.
"We did not have that confidence in the tech so our board decided to shelve this idea for the time being, until we find a better tech approach," Vembu wrote in a post on X.