Zoho CEO Denies Rs 3,034 Crore Semiconductor Investment; Calls Reports “Inaccurate”

Sridhar Vembu, the Co-founder and CEO of cloud software giant Zoho, has categorically denied reports about the company’s investment in a semiconductor plant in Odisha. The investment was reported to be a staggering Rs 3,034 crore. However, Vembu has dismissed these reports, stating that the news about their semiconductor investment is inaccurate.

The reports that were dismissed by Vembu had claimed that Silectric Semiconductor Manufacturing Pvt Ltd, a company formed by the directors of Zoho, had plans to establish a silicone carbide manufacturing unit in Khurdha district in Odisha. The investment for this project was pegged at Rs 3,034 crore. However, Vembu, in a post on a social media platform, stated, “I do not like to comment on rumours and speculation but today’s news item on our semiconductor investment is inaccurate”.

The Odisha government had reportedly discussed the Zoho proposal on Thursday. The state government had cleared three proposals from the Electronics System Design and Manufacturing (ESDM) sector, which included the proposal from Silectric Semiconductor Manufacturing.

However, Vembu clarified that their “investment proposal is still pending with various authorities and decisions have not yet been made. That is all I can say at this point”. In May this year, Vembu had stated that the company was not ready to announce anything yet regarding investments in a semiconductor fabrication unit. This was in response to reports that Zoho was preparing to invest millions of dollars into a chip manufacturing/design plant. The CEO reiterated, “We are not ready to announce anything yet.”

Despite denying this specific investment report, Zohois not entirely disconnected from the semiconductor industry. The company is seeking incentives under the production-lined incentive (PLI) scheme for a chip design and manufacturing facility in the country. In March, Vembu had announced plans to create an advanced chip design facility in Tenkasi district in Tamil Nadu.

The global semiconductor demand is being fuelled by AI, and around 150 new fabrication units will be required to meet the industry’s ambitious $1 trillion target by 2030. India will need to achieve exponential growth to maximise its share in this. Five semiconductor manufacturing facilities are coming up with a total investment of over Rs 1.52 lakh crore in India.

This is not the first time that a tech giant has been involved in such a situation. In the past, there have been instances where companies have had to deny or clarify their investment plans due to speculative reports. These instances highlight the importance of accurate and responsible reporting, especially when it involves significant investments and the reputation of established companies.