Zoho Aims to Revolutionize Compound Semiconductors in India

Zoho Corp., based in Chennai, Tamil Nadu, India, is a prominent player in the software and online subscription services industry, competing with giants like Microsoft and Salesforce. Recently, the company made headlines by submitting a proposal to the Indian government to invest approximately US$700 million in the manufacturing of compound semiconductors. This proposal is currently under review by the Ministry of Electronics and Information Technology as part of the country's US$10 billion semiconductor subsidy scheme, as reported by Reuters.

Compound semiconductors play a crucial role in various specialized functions, including optoelectronics and power applications. While traditional compound semiconductors like GaAs have been widely used, newer variants such as SiC and GaN have gained popularity, especially in power semiconductors and electric vehicles. The potential investment by Zoho signifies a strategic move towards tapping into the growing demand for these advanced semiconductor technologies.

According to reports, Zoho has already identified a technology partner to assist in establishing the semiconductor manufacturing operation, although the partner's identity remains undisclosed. Collaborating with an experienced technical partner is essential for navigating the complexities of chip manufacturing, including layout design and production flow management. Additionally, ensuring cross-license patent protection is crucial for safeguarding intellectual property rights in this competitive landscape.

India's semiconductor subsidy scheme, introduced in 2021, has faced challenges in delivering tangible outcomes promptly. While Tata Group has secured approval for its semiconductor project, receiving a substantial 70 percent subsidy for its Gujarat fab, concerns have been raised about the scheme's capacity to support multiple initiatives effectively. The government's allocation of resources may need to be carefully managed to accommodate diverse projects in the semiconductor sector.

Unlike logic chips that require high levels of miniaturization, compound semiconductor chips offer cost advantages in terms of setup and ongoing manufacturing expenses. This characteristic makes them an attractive option for companies looking to optimize production costs while delivering cutting-edge semiconductor solutions. Zoho's foray into chip design and potentially manufacturing underscores its commitment to innovation and diversification beyond its core software offerings.

In a statement earlier this year, Sridhar Vembu, the founder and CEO of Zoho, hinted at a chip design initiative without explicitly mentioning chip manufacturing. With a workforce of over 15,000 employees and annual revenues exceeding US$1 billion, Zoho is well-positioned to explore new avenues for growth and technological advancement. As the semiconductor industry continues to evolve, Zoho's proposed investment in compound semiconductor manufacturing reflects its ambition to stay at the forefront of technological innovation.