Zoho's Semiconductor Push in India

Zoho Group, a leading tech company, is making a significant move in the semiconductor industry with the launch of Silectric Semiconductor Manufacturing Pvt Ltd. This new venture aims to establish a silicon carbide manufacturing facility in Odisha, India. The project is expected to attract an investment of INR 3,034 crore and will be located in the Khurdha district.

• The facility will be a major player in the Indian semiconductor sector, focusing on creating an integrated manufacturing value chain for silicon carbide products.
• This includes the production of silicon carbide ingots, wafers, MOSFETs, modules, and final assembly and packaging.

A Strategic Investment in India's ESDM Sector

The Odisha government has approved the Silectric plant, which is one of three projects from the electronics system design and manufacturing (ESDM) sector to receive clearance. This investment signifies a growing interest in India as a hub for semiconductor manufacturing. The project has received approval from the Odisha High Level Clearance Authority (HLCA), showcasing the government's commitment to attracting and facilitating large-scale industrial ventures.

• Silectric's facility will operate under both a captive and foundry services model, catering to a wide range of customers in the industry.
• It will produce up to 72,000 units annually across EPI wafers, MOSFETs, and modules.
• The company is also seeking support under the Indian Semiconductor Mission, which is overseen by the Ministry of Electronics and Information Technology (MeiTY).

Silicon Carbide: Key to Electric Vehicles and Renewable Energy

Silicon carbide is a crucial material in the growing electric vehicle (EV) and renewable energy sectors. Silectric's focus on silicon carbide products aligns with India's efforts to promote clean energy technologies. The manufactured components will play a key role in enhancing the performance and efficiency of EVs, automotive components, and renewable energy systems.

• Silicon carbide has excellent thermal and electrical properties, making it ideal for high-power applications.
• Its use in electric vehicle components, such as power inverters and motor controllers, can contribute to improved range, efficiency, and reliability.

Zoho's Role in Shaping India's Semiconductor Landscape

The key management team at Silectric includes experienced professionals with a proven track record in the technology sector. This includes Navneethan Jai Anand, Radha Vembu, Dandapani Rajendran, and Krishnan Ramabadran, all of whom are also directors at Zoho. This signifies Zoho's commitment to driving innovation and growth in the Indian semiconductor industry.

• Zoho's involvement adds credibility and expertise to the project, enhancing its potential for success.
• The company's experience in software and technology will be instrumental in developing and implementing advanced manufacturing processes.

Reshaping Global Semiconductor Supply Chains

The global semiconductor industry is undergoing a significant shift. Multinational corporations are actively pursuing a "China plus one" (C+1) strategy to diversify their supply chains and reduce dependence on China. India, with its growing economy and favorable policies, is emerging as a key player in this global transformation.

• Silectric's project is a prime example of this trend, attracting investment and creating opportunities for growth in India's technology sector.
• The "just-in-case" philosophy is gaining traction, emphasizing the need for resilient and diversified supply chains.

Odisha's Role in India's Semiconductor Ecosystem

Odisha, with its strategic location and government initiatives, is well-positioned to become a major hub for semiconductor manufacturing in India. The state offers attractive investment incentives, a skilled workforce, and a supportive regulatory environment. The approval of the Silectric project further strengthens Odisha's position as a key player in India's semiconductor ecosystem.

• The state government's focus on attracting large-scale industrial projects, including those in the ESDM sector, is creating a positive environment for growth.
• The availability of land, infrastructure, and skilled labor will be crucial for the successful implementation of the Silectric project and other similar ventures in the future.

A Promising Future for India's Semiconductor Industry

Silectric's venture marks a significant milestone in India's journey towards becoming a global leader in semiconductor manufacturing. With growing investment, technological advancements, and government support, India is poised to play a key role in shaping the future of the semiconductor industry.

• The increasing demand for semiconductors, driven by the growth of electric vehicles, renewable energy, and other technologies, presents significant opportunities for India.
• India's focus on attracting foreign investment and nurturing domestic capabilities will be crucial in realizing its full potential in the semiconductor sector.