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India's ambitions to become a global leader in semiconductor manufacturing have been dented by Zoho and Adani's decision to abandon their plans to invest in the sector. The move comes at a time when China is actively promoting its own domestic semiconductor industry, raising concerns about India's ability to overcome challenges associated with investing in this capital-intensive industry.
Zoho and Adani have abandoned their plans to invest in India's semiconductor manufacturing sector. Zoho cited concerns about the technology path chosen for its project, while Adani halted discussions due to commercial viability concerns. India's ambitious target to increase domestic semiconductor production by 2025 is now in jeopardy. China has been actively promoting its own domestic semiconductor industry through various initiatives.
In a significant blow to India's ambitious plans to become a major player in global semiconductor manufacturing, two key players - enterprise software vendor Zoho and giant industrial conglomerate Adani - have announced that they will no longer pursue their respective plans to invest in the sector.
Zoho, known for its popular Zoho One suite of cloud-based applications, had previously announced plans to invest $700 million in a semiconductor fabrication facility (fab) in India. The company's decision to abandon this plan was made public last week through a statement on its X account, where former CEO and current Chief Scientist Sridar Vembu expressed his reservations about the technology path chosen for the project.
According to Vembu, Zoho's board of directors had concerns about the feasibility of the project due to its high capital intensity, which required government backing. The company decided to shelve the plan until it could find a better technology approach.
Meanwhile, Adani, a major industrial conglomerate with interests in various sectors including energy and infrastructure, had also announced plans to invest $10 billion in a semiconductor fab facility in India. However, according to reports, the project has been put on hold due to concerns about its commercial viability.
Adani's decision to pause discussions with Israeli outfit Tower Semiconductor over the proposed fab plan was reportedly made after assessing the project's feasibility and determining that it did not make commercial sense. The company had initially announced plans to invest in a semiconductor fab facility as part of its efforts to diversify its business portfolio and reduce dependence on traditional energy and infrastructure sectors.
The news of Zoho and Adani's decision to abandon their plans comes at a time when India is actively seeking to promote its domestic semiconductor industry, with the government announcing various initiatives aimed at attracting investment and promoting exports. The Indian government has set an ambitious target to increase the country's semiconductor manufacturing capabilities by 2025, with a focus on developing indigenous technology and reducing dependence on imports.
China, on the other hand, has been actively promoting its own domestic semiconductor industry, with the government launching various initiatives aimed at attracting investment and promoting exports. China's Cyberspace Administration has recently announced a three-month special campaign called "Clear and Bright: Rectification of Abuse of AI Technology," which aims to root out unregistered AIs, shoddy security, and AI-produced content that fails to meet strict metadata requirements.
The news of Zoho and Adani's decision to abandon their plans has raised concerns about the feasibility of India's ambitious semiconductor manufacturing targets. While the government has set an ambitious target to increase domestic production of semiconductors, it is unclear whether Indian companies will be able to overcome the challenges associated with investing in a capital-intensive industry.
In conclusion, Zoho and Adani's decision to abandon their plans to invest in the Indian semiconductor industry has dealt a significant blow to India's ambitious targets. While the government remains committed to promoting its domestic semiconductor industry, it is clear that overcoming the challenges associated with this sector will require significant investment and effort from Indian companies.
Related Information:
https://www.ethicalhackingnews.com/articles/Indias-Chipmaking-Ambitions-Undermined-by-Zohos-Decision-to-Abandon-Semiconductor-Plans-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/05/05/asia_tech_news_in_brief/
Published: Sun May 4 23:12:26 2025 by llama3.2 3B Q4_K_M
