Indian Companies Zoho Entering the Semiconductor Industry
Indian businesses are expanding beyond their main areas of expertise and venturing into the complex semiconductor industry. Previously, major companies like Tata Group (known for its diverse ventures), CG Power (a power giant), Hiranandani Group (real estate), L&T (engineering and manufacturing), and HCL Group have made significant moves into this sector. The latest to join is Zoho, a Chennai-based company famous for its software services, which has applied to create a compound semiconductor fab with a technology partner.
Satya Gupta, President of VLSI Society, views this positively. He says, “It’s great that successful technology companies are investing in electronics and semiconductors. Zoho has been interested in this field for a while and has invested in compute servers and chip design companies.” Zoho’s new proposal to build a Silicon Carbide (Compound Semiconductor) Fab is seen as a positive step. Gupta adds, “Silicon carbide and GaN (Gallium Nitride) for power electronics will be crucial for India in areas like electric vehicles, alternative energy, railways, power distribution, green hydrogen, and other growing sectors.”
Silicon carbide fabs, unlike traditional silicon fabs, require less investment and simpler technology, potentially having a significant impact on India.
Why Semiconductors?
Devroop Dhar, Co-founder & Managing Director at Primus Partner, explains the rationale: “With increasing demand from industries like computers, electronics, telecommunications, automobiles, energy, and healthcare, India needs to reduce its import reliance and aim for self-sufficiency in semiconductors. This presents a big opportunity for Indian companies, which Zoho is addressing.” Zoho plans to collaborate with UK-based Clas-SiC Wafer Fab for this project. This investment in Tamil Nadu will diversify semiconductor investments across India, joining other projects in states like Gujarat and Assam. This geographical spread will also help attract talent to the industry.
Experts believe Indian companies recognize the need to diversify beyond software services, with semiconductors being a key area. Independent semiconductor analyst Arun Mampazhy notes several indirect factors, including the availability of skilled talent in India and feedback from Indian expats in the industry, driving these decisions.
Danish Faruqui, CEO of Fab Economics, cites government subsidies and streamlined regulatory approvals as key reasons for companies to enter the semiconductor industry.
The global semiconductor market is projected to nearly double to $1 trillion by 2030, up from the current $600 billion, highlighting its vast potential.
