Bengaluru, May 2 (KNN) India’s push to establish a domestic semiconductor industry has suffered a setback, as Adani Group and Zoho Corp are reportedly backing out of their planned chipmaking ventures.
Zoho founder Sridhar Vembu confirmed the move on social media, citing doubts about the chosen technology path and a reluctance to proceed without firm confidence. “We did not have that confidence in the tech, so our board decided to shelve this idea,” Vembu stated. Zoho’s proposed Rs 3,426 crore fabrication plant in Mysuru was expected to create 460 jobs and had recently received approval from the Karnataka government.
Adani Group’s exit, reported by Reuters, involves a USD 10 billion chip plant in Maharashtra in partnership with Israel’s Tower Semiconductor. According to sources, Adani cited weak chip demand and limited financial commitment from Tower as key concerns.
Both exits follow the 2023 collapse of the Vedanta-Foxconn chip venture, further underscoring the challenges facing India’s chip ambitions.
While Zoho was exploring power electronics semiconductors — a niche with few global manufacturers — Adani’s plans were more broadly focused.
Karnataka officials, including IT Minister Priyank Kharge, said they have not received formal notification from Zoho but reaffirmed the state’s commitment to its electronics system design and manufacturing (ESDM) goals.
Despite these setbacks, major projects like Tata’s USD 11 billion semiconductor and packaging facilities and Micron’s USD 2.7 billion packaging plant in Gujarat remain underway.
India currently lacks an operational semiconductor fabrication facility, and the recent withdrawals highlight the hurdles — including high costs, complex tech requirements, and demand uncertainties — that the country must overcome to become a global chip hub.
(KNN Bureau)
