Archean Chemical Industries Limited has informed the Exchange about Union Cabinet approves compound semiconductor fab of SiCSem Private Limited (subsidiary of Archean Chemical Industries Limited)
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The Union Cabinet has approved a Silicon Carbide (SiC) based compound semiconductor fab to be set up by SiCSem Private Limited, a subsidiary of Archean Chemical Industries, in Info Valley, Bhubaneshwar, Odisha, under the India Semiconductor Mission. The facility will be India's first commercial compound semiconductor fab, with an annual capacity of 60,000 wafers and packaging capacity of 96 million units, and will be built at an estimated investment of Rs. 2,067 crore. SiCSem is partnering with Clas-SiC Wafer Fab Ltd. of the UK for the project, and the products will serve missiles, defence equipment, EVs, railways, fast chargers, data centres, consumer appliances and solar inverters. The announcement marks a major diversification move for Archean Chemical from specialty chemicals into the semiconductor space, leveraging government policy support.
This is a transformational, government-backed project for Archean Chemical and signals entry into a high-growth sector. While the Rs. 2,067 crore capex through its subsidiary is a large commitment, it could significantly expand the company's long-term revenue base and re-rate the stock, though execution and funding risks remain key things to watch.