Lack of technical directions and inability of Govt. to provide land cited as reasons

Mysuru: In a major setback to Mysuru’s semiconductor ambitions, Chennai-based Silectric Semiconductor Manufacturing Pvt. Ltd. — promoted by directors of Zoho Corporation — has suspended its Rs. 3,425.60 crore investment plan in Karnataka’s first electronics manufacturing cluster at Kochanahalli near Nanjangud in Varuna hobli of Mysuru district.

The proposed facility, which was expected to create 460 jobs on a 40-acre site, has been put on hold as Zoho Corporation reportedly failed to find a suitable technology partner to guide the highly complex semiconductor manufacturing processes.

Sridhar Vembu, Chief Scientist at Zoho, said, “Since this business is so capital-intensive, it requires Government backing. We wanted to be sure of the technology path before we took taxpayer’s money. We did not have that confidence in the technology, so our board decided to shelve the idea for the time being, until we find a better technological approach.”

Legal disputes on land

However, sources in the Industries Department requesting anonymity told Star of Mysore this morning that the Karnataka Industrial Areas Development Board (KIADB) has not yet fully acquired the land.

The State Government had earmarked 234.67 acres at Kochanahalli, near Kadakola, for an Electronics Manufacturing Cluster (EMC), with 140 acres specifically allocated for semiconductor units. But sources said that large portions of the area are under legal dispute.

It is reported that several farmers and landowners have approached the courts demanding higher compensation. Officials estimate it could take up to a decade for legal battles to conclude.

Land prices in and around Kochanahalli, Adakanahalli, Immavu, Tandya and Kadakola have surged significantly, prompting landowners to seek higher payouts, sources added.

Just last December, the Karnataka Government had announced the approval of Zoho Corporation’s proposed 400-million-dollar semiconductor facility in Mysuru, touting it as a landmark development.

Zoho, a 12 billion-dollar software company known for its affordable alternatives to tools from tech giants like Microsoft, had even made a few initial hires and formed a board to oversee the semiconductor project through Silectric Semiconductor Manufacturing. However, sources confirmed that the lack of technological direction led to the suspension of the plan.