Chennai-based Zoho Corp. has utilized for a licence to construct a compound semiconductor fabrication plant, committing $200 million to the challenge. In keeping with two senior business officers, this compound fab challenge is predicted to draw round $600 million in internet funding and can contain a expertise accomplice.
Sridhar Vembu, co-founder, and chief govt of Zoho Corp, introduced on the firm’s annual occasion in Texas, US, that the license utility has been submitted, and they’re presently awaiting authorities clearance. A proper announcement will observe upon approval. Vembu added that Zoho is hopeful the federal government will co-finance the challenge beneath the compound semiconductor manufacturing scheme.
One of many officers disclosed that Zoho’s fab challenge goals to convey Silicon carbide (SiC) chip manufacturing to Tamil Nadu, with plans to license the expertise from Clas-SiC, a Scotland-based firm.
Subsidies for compound semiconductor fabs are a part of the Indian authorities’s initiative to develop the semiconductor and show manufacturing ecosystem, with pointers revised in June 2023. Below this scheme, candidates for a fab can obtain fiscal help masking 50% of their capital expenditure in the event that they meet a specified capex threshold.
Silicon carbide chips are utilized in varied industrial functions, together with electrical autos (EVs). In October, Vembu revealed that Zoho is exploring investments in superior chemistry cells, the core parts of batteries utilized in electronics and EVs.
“This area is beneath exploration, and discussions are underway with some stakeholders. Whereas it’s untimely for an announcement, there’s a requirement to develop deep tech and manufacturing capabilities in India. The superior cell chemistry production-linked incentive (PLI) schemes additionally current substantial potential. People with expertise in cell R&D are being sought, and discussions with some candidates are presently ongoing”, Vembu mentioned.
The 2 initiatives are possible linked, the second official talked about.