- Tenkasi is evolving from a rural town into a technology hub with a focus on chip design
- Ananthan Ayyasamy, ex-Intel director, launched Tenkasi Semiconductors to build chip design skills
- Zoho founder Sridhar Vembu leads rural tech growth and supports semiconductor design in Tenkasi
Tenkasi, a quiet temple town nestled at the foothills of the Western Ghats, is emerging as an unlikely node in India's technology map. The latest signal came from Ananthan Ayyasamy, a former semiconductor engineering director at Intel in the US, who recently announced the formation of “Tenkasi Semiconductors,” hinting at plans to develop chip design capabilities from the region.
Once known primarily for agriculture and seasonal tourism, the district is now attracting technologists returning from global careers, drawn by a shared ambition to build deep-tech capabilities far from traditional urban hubs.
Ayyasamy's move mirrors a broader shift led by Zoho founder Sridhar Vembu, who has spent over a decade building a rural technology ecosystem in Tenkasi. Vembu is also involved with Tenkasi Semiconductors.
From Software to Semiconductors
While Vembu scrapped earlier plans to establish a semiconductor fabrication plant, his ambitions in chip design remain intact. He has confirmed ongoing investments in building semiconductor design capabilities through multiple entities, including an initiative based in Tenkasi.
Unlike fabrication plants, which require billions of dollars in capital, chip design focuses on intellectual property and engineering talent. Chips designed in Tenkasi could eventually be manufactured at upcoming facilities such as Tata Electronics' fab in Gujarat or existing foundries overseas.
This shift toward chip design reflects a pragmatic strategy—building high-value technological capability without the heavy infrastructure burden of fabrication.
Zoho's Rural Bet Laid the Foundation
The groundwork for Tenkasi's emergence was laid in 2011, when Zoho established a small office in Mathalamparai village with just six employees. At the time, sceptics questioned whether rural India could supply the talent needed for a global software company.
Today, Zoho employs around 1,200 people in the region, with its rural hub-and-spoke model expanding to over 100 offices across smaller towns and villages in India. The company's hiring strategy focuses on identifying and training local students, proving that skilled talent need not migrate to metros to build technology careers.
Zoho's presence has reshaped Tenkasi's economic profile, transforming it from a largely agrarian district into a growing technology centre.
The emergence of ventures like Tenkasi Semiconductors suggests that rural tech ecosystems are now attracting experienced global professionals, not just nurturing local talent.
This reverse migration trend reflects both opportunity and intent. For returning technologists, smaller towns offer the chance to build institutions from scratch, contribute to regional development, and tap into underutilised talent pools.
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