India's ambitious plans to create a global microchip manufacturing industry have hit a crisis. In May 2024, Zoho, a software developer, announced plans to invest $700 million in building a chip fabrication plant. However, on May 28, 2024, Zoho's board of directors decided to postpone the project. The reason was lack of confidence in the chosen technological trajectory. Sridhar Vembu, the former CEO and current chief scientific officer of the company, stated in his X account: 'The company did not want to use taxpayers' money without being fully confident of the project's success.'
At the same time, industrial giant Adani suspended negotiations with Israel's Tower Semiconductor on a joint $10 billion chip manufacturing plant. According to Reuters, Adani assessed the project as economically unfeasible. Both events highlight the challenges faced by major players in the semiconductor market, where high competition and significant investments require precise strategic planning.