In a significant reflection on the nature of technological innovation, Zoho co-founder and chief scientist Sridhar Vembu has delineated the two core pathways of engineering research and development. He emphasized that each demands distinct levels of patience and financial commitment from organizations.
The Dual Pathways of Technological R&D
In a detailed post on the social media platform X, Vembu explained that research and development work fundamentally splits into two categories. The first involves catching up with the existing state-of-the-art technology, while the second is focused on advancing beyond current global capabilities.
"Catching up is generally easier than advancing the state of the art, but depending on the technology—as an example 3 nm fab or advanced jet engines—even that can be extremely hard," Vembu wrote. He pointed out that while pushing the technological frontier is typically more challenging, unexplored domains can sometimes offer relatively easier progress.
The tech leader stressed that sustained investment in both approaches is crucial for long-term success. "We have to invest in both but we have to understand the difficulty level and adjust our patience level accordingly. We need the talent and money but we also need the patience to stay the course," he advised.
Direct Link to Zoho's Shelved Chipmaking Ambition
Vembu's insights into R&D philosophy appear closely connected to a major strategic decision by Zoho. The software company suspended its ambitious $700 million semiconductor manufacturing plan in May 2025 after a year of concerted effort.
The decision, as explained by Vembu, hinged on a critical lack of confidence in the technological approach. "We did not have that confidence in the tech so our board decided to shelve this idea for the time being, until we find a better tech approach," he stated. Given the capital-intensive nature of chip fabrication, which often requires substantial government support, Zoho wanted absolute certainty before potentially utilizing taxpayer funds.
The original plan involved a $400 million investment in a semiconductor facility in Karnataka, which was projected to create approximately 460 jobs. The company's subsidiary, Silectric Semiconductor Manufacturing, had initiated limited hiring and formed a board. Reports indicated the firm faced significant challenges in securing suitable technology partners for the complex chipmaking processes, a key factor in the pause.
India's Semiconductor Drive Gains Momentum
While Zoho recalibrates its strategy, the Indian government is aggressively advancing its semiconductor ambitions. Speaking at the Bloomberg New Economy Forum, Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, outlined a clear roadmap. The plan aims for India's semiconductor industry to achieve parity with the world's most advanced manufacturers by 2032.
To accelerate this vision, the government has launched a substantial subsidy scheme with a total corpus fund of $10 billion. This initiative has already attracted participation from major global and domestic players, including Micron Technology and the Tata Group. Minister Vaishnaw noted that three new fabrication plants (fabs) are scheduled to begin commercial production early next year.
This strategy mirrors the successful policy playbook used to encourage tech giants like Apple and its manufacturing partners to establish significant iPhone production bases within India, signaling a determined push to become a global electronics and semiconductor hub.
The contrasting narratives—a cautious corporate pause and an assertive national push—highlight the complex balance of risk, patience, and strategic confidence required to compete in the high-stakes arena of advanced technology manufacturing.
