India’s ambition to become a global semiconductor manufacturing player went backwards last week after a big player changed its plans.

Enterprise software vendor Zoho, which abandoned a plan to become a semiconductor manufacturer.

Best known for its Zoho One suite that bundles SaaS-Y CRM, HR, marketing, finance, HR and e-commerce tools at remarkably modest prices, Zoho in May 2024 announced a plan to invest $700 million in a semiconductor fab.

Last week, that dream died. Former CEO and current Chief Scientist Sridar Vembu used his X account to lament the fact that he and the company’s board did not feel ready to become a chipmaker and decided to walk away.

“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,” he wrote. “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.”

This article is an excerpt from The Register