Yesterday, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved SiCSem Private Limited – a wholly owned subsidiary of Archean Chemical Industries, to establish a Silicon Carbide (SiC)-based compound semiconductor fabrication plant under the India Semiconductor Mission (ISM).

The project, eligible for ISM’s 50% capital expenditure incentive, will be among India’s first dedicated SiC semiconductor fabs, producing high-efficiency chips used in electric vehicles, renewable energy systems, industrial power modules, and 5G infrastructure.

Market analysts say the move marks a strategic diversification for Archean Chemical from its core specialty chemicals into high-tech manufacturing, unlocking potential long-term synergies with global EV and energy players.

Shares of Archean Chemical are in focus today, following the announcement, with investors eyeing growth prospects from entry into the high-margin compound semiconductor space.

The stock price is up in the green today, opening over 2.5% higher at Rs.669 and rising to an intraday high at Rs.727.80, up almost 12%. Its 52-week high is at Rs.831.