Bengaluru, May 2 -- India's push to establish a domestic semiconductor industry has suffered a setback, as Adani Group and Zoho Corp are reportedly backing out of their planned chipmaking ventures.

Zoho founder Sridhar Vembu confirmed the move on social media, citing doubts about the chosen technology path and a reluctance to proceed without firm confidence. "We did not have that confidence in the tech, so our board decided to shelve this idea," Vembu stated. Zoho's proposed Rs 3,426 crore fabrication plant in Mysuru was expected to create 460 jobs and had recently received approval from the Karnataka government.

Adani Group's exit, reported by Reuters, involves a USD 10 billion chip plant in Maharashtra in partnership with Israel's Tow...