Archean Chemical Subsidiary Signs Agreement Under India Semiconductor Mission for SiC Facility

What happened:
Archean Chemical Industries’ step-down subsidiary, SiCSem Private Limited, has signed a Fiscal Support Agreement with the India Semiconductor Mission under the Semicon India Programme. 

The project includes the development of a Silicon Carbide (SiC) compound semiconductor fab and an outsourced semiconductor assembly and test (OSAT/ATMP) facility at Info Valley, Bhubaneswar, Odisha.

The proposed project involves an investment of around Rs. 2,067 crore. The facility is expected to manufacture nearly 60,000 SiC wafers annually along with about 96 million SiC MOSFETs and diodes.

Why it matters:
Silicon Carbide semiconductors are increasingly being used in electric vehicles, renewable energy systems, telecom infrastructure, and industrial power electronics.

The project adds domestic manufacturing capacity in a segment currently dependent on global supply chains. It also aligns with India’s semiconductor manufacturing push under the Semicon India Programme.

Industry context:

India is expanding its semiconductor ecosystem through fabrication, packaging, and compound semiconductor projects. SiC-based devices are gaining relevance due to higher efficiency and performance in high-voltage applications.

There is a growing investment activity in specialised semiconductor manufacturing beyond conventional silicon-based chips.

Our take:
The agreement marks a key execution-stage development for India’s compound semiconductor manufacturing ambitions. It highlights increasing industry focus on power electronics and next-generation semiconductor materials.