Archean Chemical Industries Limited 's subsidiary, SiCSem Private Limited, has taken a significant step towards establishing India's presence in the semiconductor industry. The company recently conducted a groundbreaking ceremony for its Silicon Carbide (SiC) compound semiconductor fabrication and Assembly, Testing, Marking, and Packaging (ATMP) unit in Info Valley, Bhubaneswar, Odisha.

Project Details

The facility, which marks Archean Chemical's expansion into semiconductor manufacturing, is scheduled to commence operations in November 2025. This move aligns with the company's broader strategy to diversify its portfolio and tap into the growing demand for advanced semiconductor materials.

Strategic Importance

The Silicon Carbide semiconductor facility is poised to play a crucial role in various high-growth sectors. According to the company's investor presentation, SiC devices, including MOSFETs and Power Devices, will cater to industries such as:

• Defense
• Electric Vehicles (EVs)
• Railways
• Fast Chargers
• Data Centre racks
• Consumer Appliances
• Solar Power Inverters

Market Potential

The decision to venture into SiC semiconductor manufacturing appears to be well-timed. The company's presentation highlights that the SiC market is forecast to grow at a 26% Compound Annual Growth Rate (CAGR) through 2030, potentially reaching a market size of over USD 14.00 billion.

Government Support

Notably, SiCSem Private Limited has received approval from the India Semiconductor Mission (ISM) on August 12, 2025, to set up this Silicon Carbide (SiC) based Compound Semiconductor fab. This approval underscores the project's alignment with the government's push to bolster India's semiconductor manufacturing capabilities.

Facility Specifications

The integrated facility is designed to have an impressive annual capacity:

Competitive Edge

Archean Chemical emphasizes that this facility will be the first commercial compound semiconductor fab in India, potentially giving the company a significant first-mover advantage in the domestic market.

Collaboration

The project benefits from a strategic collaboration with Clas-Sic Wafer Fab Limited, UK, in which Archean Chemical Industries Limited holds a 21% stake. This partnership is expected to bring valuable expertise and technology to the venture.

Conclusion

The groundbreaking of the Silicon Carbide semiconductor facility in Bhubaneswar represents a significant milestone for Archean Chemical Industries Limited. It not only marks the company's entry into the high-tech semiconductor sector but also aligns with India's ambitions to become a key player in the global semiconductor industry. As the facility progresses towards its planned operational date in November 2025, it will be interesting to observe its impact on both the company's growth trajectory and India's semiconductor manufacturing landscape.

Archean Chemical Industries Limited , a leading manufacturer of marine chemicals, has reported a net profit of Rs 3,846.27 lakhs for the quarter ended September 30, 2025, compared to a profit of Rs 2,186.69 lakhs in the same period last year. The company's financial performance was impacted by a decline in revenue and an exceptional item related to inventory loss.

Revenue and Operational Performance

The company's revenue from operations decreased to Rs 22,076.01 lakhs in Q2 FY2026, down from Rs 23,831.51 lakhs in Q2 FY2025, representing a year-on-year decline of 7.37%. This reduction in revenue may be attributed to challenging market conditions or reduced demand for the company's products.

Exceptional Item Impact

An exceptional item significantly affected Archean Chemical's quarterly results. The company reported a loss of industrial salt stock worth Rs 4,018.27 lakhs (4.72 Lakh MT) in Gujarat, which was caused by the Asna cyclone during August/September 2025. The company has initiated an insurance claim process for this loss.

Profitability and Expenses

Despite the revenue decline, the company's total expenses amounted to Rs 18,068.02 lakhs in Q2 FY2026, compared to Rs 18,226.86 lakhs in Q2 FY2025. The exceptional item and lower revenue impacted the quarterly profitability, resulting in a profit before tax of Rs 5,110.12 lakhs and a profit after tax of Rs 3,846.27 lakhs.

Balance Sheet and Financial Position

As of September 30, 2025, Archean Chemical Industries reported:

The company maintains a strong equity position, with total equity representing about 83.7% of total assets.

Income Tax Department Search Operation

Archean Chemical Industries disclosed that the Income Tax Department conducted a search and seizure operation from September 4-9, 2025, across various locations of the company and its subsidiaries. The management stated that this event does not have any material adverse impact on the quarterly results. However, the company has not received any order, notice, or communication on the findings of this investigation as of the reporting date.

Strategic Investments

The company's board of directors approved investments in Clas-SiC Wafer Fab Limited, UK, and Offgrid Energy Labs Inc, USA, signaling a move into silicon carbide semiconductor manufacturing and zinc-bromide battery technology, respectively. These investments may diversify Archean Chemical Industries' revenue streams in the future.

Conclusion

While Archean Chemical Industries faces short-term challenges, including the impact of the cyclone and revenue decline, the company continues to focus on its core competencies in marine chemicals. The strategic investments in the semiconductor and energy storage sectors indicate the company's efforts to expand its business horizons. Investors and stakeholders will be watching closely to see how the company navigates the current challenges and capitalizes on its new strategic investments in the coming quarters.