‘Inaccurate’: Zoho’s CEO Sridhar Vembu Shrugs Off Report On Its INR 3K Cr Chip Investment In Odisha

Hours after a media report emerged that Chennai-based tech giant Zoho’s semiconductor venture could come up in Odisha with an investment of INR 3,034 Cr, the company’s founder and chief executive Sridhar Vembu dismissed the report, calling it “inaccurate”.

Taking to social media platform X, Vembu said, “I do not like to comment on rumours and speculation but today’s news item on our semiconductor investment is inaccurate. Our investment proposal is still pending with various authorities and decisions have not yet been made. That is all I can say at this point.”

As per BusinessLines’ report, a semiconductor venture from the Zoho group would be built in Odisha with an investment of INR 3,034 Cr. It further said that a company named Silectric Semiconductor Manufacturing Pvt Ltd, formed by Zoho directors in March, has been planning to set up a silicon carbide manufacturing unit in Odisha’s Khurdha district.

The news gained traction following a post on X by Sampad Chandra Swain, Minister of State for Industries, Skill Development and Technical Education, Government of Odisha. 

Swain announced that the Odisha High Level Clearance Authority (HLCA) approved 12 major industrial projects, with half of the total INR 39,000 Cr investment being sanctioned. 

As per the initial reports, the proposed Silectric facility aimed to establish a comprehensive silicon carbide manufacturing value chain, from ingots to wafers, MOSFETs, modules, and packaging. 

The unit was said to have a planned annual capacity of 72,000 each for EPI wafers, MOSFETs, and modules. The end products were reportedly intended for use in power electronics for electric vehicles, automotive applications, and renewable energy sectors.

While Vembu’s statement clarifies that no final decisions have been made, it’s worth noting Zoho’s previous interest in the semiconductor sector. In May 2024, reports emerged about Zoho considering a $700 million investment in chip manufacturing, focusing on compound semiconductors. At that time, the company had reportedly applied for approval under the government’s Production Linked Incentive (PLI) scheme.

Zoho Corporation, founded in 1996, is primarily known for its suite of cloud-based business software applications. The company has grown significantly over the years, with its operating revenue reaching INR 8,703.6 Cr ($1 Bn) in FY23, a 30% year-on-year increase.

Unlike many of its peers, Zoho remains bootstrapped and profitable. The company reported a net profit of $340 Mn in FY23. Zoho’s success stems from its focus on research and development, with the company reinvesting a substantial portion of its profits into innovation.

India’s push for domestic semiconductor manufacturing has gained significant momentum in recent years. 

The government’s Semicon India programme, with an allocation of ₹76,000 crore, aims to develop a robust semiconductor and display manufacturing ecosystem in the country. 

According to a report by Inc42, India’s semiconductor market is projected to surpass $150 billion by 2030, growing at a 24% compound annual growth rate (CAGR) between 2023 and 2030.

Several major players have already made strides in this sector. In February 2024, the union cabinet approved the country’s first semiconductor fab to be set up by the Tata Group in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), with a net investment of ₹91,000 crore. Other approved projects include ventures by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) and a collaboration between CG Power and Japan’s Renesas.