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Zoho CEO Sridhar Vembu is among few of the most popular tech executives in the country. One of the richest men in India, Vembu is known for his vision and out of the box thinking. He is also quite popular on social media platforms because of his opinions and point of view. His recent post X is also going viral among the business community and tech enthusiasts. In his post, Vembu shared his thoughts on why chipmaker Intel is suffering while companies like Nvidia and AMD are touching new heights. Vembu believes the reason behind Intel's market decline is prioritisation of Wall Street returns over investing in its employees' well-being. In a sharp contrast, Vembu lauded competitors like Nvidia, AMD, and Taiwan Semiconductor Manufacturing Company (TSMC) for their focus on nurturing engineering talent, which he believes is a key driver of their success.
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Intel's Misstep
Vembu's critique of Intel's strategy was pointed: “Intel took care of Wall Street instead, and they have lost comprehensively to TSMC, AMD, and Nvidia. And now they have lost Wall Street as well,” he said. The comment was part of a broader discussion where Vembu addressed accusations of him being "a socialist," suggesting that his stance on corporate practices and layoffs could be seen as contrary to traditional American business ideologies.
The Zoho chief executive also referenced the approach of tech companies like Freshworks, whose recent layoffs sparked debates about the future of work in the tech industry. Vembu argued that the current trend, prioritising shareholder returns over employee welfare, marks a stark departure from historical US business practices, where companies became successful by prioritising their workforce.
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Long-Term Focus Yields Results
Vembu pointed to Nvidia and AMD's success as a model for sustainable business practices. He praised both companies for their commitment to retaining skilled engineers, whose deep technical expertise has allowed them to thrive. He also highlighted the success of TSMC, noting that despite Taiwan's relatively small population, the country's semiconductor industry has grown into a global leader due to its emphasis on engineering talent and long-term growth.
In contrast, Vembu criticised what he described as a "perversion" of capitalism in the US, where companies focus on short-term financial gains and executive compensation rather than sustainable, employee-focused growth. He lamented practices like corporate bailouts and inflated asset valuations, arguing that they distort true capitalist principles.
A Call for "Real Capitalism"
Vembu further criticised the current US financial system, accusing it of rewarding risky, short-term decisions while leaving taxpayers to foot the bill when things go wrong. Referring to the 2023 Silicon Valley Bank bailout, he pointed out how tech entrepreneurs, who usually champion free-market principles, quickly abandoned those ideals when their investments faltered.
The Zoho CEO called for a return to what he terms "real capitalism," where companies prioritise their most valuable asset—employees—and build businesses that are sustainable in the long run. "That is how real capital building works: take care of your employees, your most valuable asset and build long-term successful companies," Vembu concluded, emphasising that this people-first approach was not just good business practice, but a reflection of his broader philosophy, which he framed as "our dharma."
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