India's ambition in the global semiconductor manufacturing sector has recently suffered a major setback, with two heavyweight companies adjusting or abandoning their original semiconductor manufacturing plans.
Software supplier Zoho officially announced last week that it has abandoned its semiconductor manufacturing plan. The company is known for providing the business operating system Zoho One, which includes tools such as CRM, HR, and marketing. Zoho announced plans to invest $700 million to establish a semiconductor wafer fab in May last year, but recently Zoho's former CEO and current chief scientist Sridar Vembu stated on social media X that the company's board of directors believes it is not yet ready to invest in the chip manufacturing field and has decided to abandon the plan.
At the same time, Adani, a large industrial group in India, has also reportedly suspended discussions with Israeli chip manufacturer Tower Semiconductor regarding a $10 billion wafer fab plan. According to reports, Adani believes that the project is not commercially feasible and therefore chooses to withdraw.
Insiders revealed that Adani Group had previously stated that the project was still under evaluation, but after internal evaluation, it was found that there was uncertainty about how much demand the business could generate, especially in the Indian market. Therefore, negotiations with Takata Semiconductor have been put on hold.
Another source stated that Adani Group is dissatisfied with the financial resources that Takata Semiconductor is willing to invest, but did not disclose specific details.
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