New Delhi, May 16 (IANS): As India bets big on its semiconductor dream under the vision of Prime Minister Narendra Modi, homegrown IT software major Zoho is apparently planning to invest millions of dollars into a chip design and manufacturing facility in the country.

The cloud software major is currently seeking incentives under the production-lined incentive (PLI) scheme, according to sources with direct knowledge of the matter.

The government in 2021 announced the Rs 76,000 crore chip incentive schemes, aimed at catalysing the semiconductor value chain -- design, manufacturing, packaging and testing of microchips.

When reached, Chennai-headquartered Zoho did not immediately comment on the development.

In March, Zoho Founder and CEO Sridhar Vembu announced plans to create an advanced chip design facility in Tenkasi district in Tamil Nadu.

Responding to an X post by Ananthan Ayyasamy, a BJP leader from Tenkasi, Vembu said that they have been planning a "semiconductor design project" in Tenkasi. There has been a flurry of activities in the country on the semiconductor manufacturing front in the last couple of years, with some big-ticket announcements.

According to latest data by the India Cellular and Electronics Association (ICEA), the current electronics manufacturing at nearly $103 billion translates to a semiconductor requirement of $26-$31 billion.

As the country aims to reach $300 billion in electronics production by FY26, it will increase demand for semiconductors worth at least $100 billion.

The ICEA data showed that in FY23, the import of integrated circuits (ICs) reached $16.14 billion -- out of which $12 billion was only for mobile phones.

PM Modi laid the foundation stone for three semiconductor projects worth Rs 1.25 lakh crore in March this year.