Archean Chemical Industries signed a fiscal support agreement with the India Semiconductor Mission for the development of India’s first approved Silicon Carbide (SiC) semiconductor fabrication and assembly facility under the Semicon India Programme. The agreement was executed on May 11, 2026, along with the company’s wholly-owned subsidiary Neun Infra and step-down subsidiary SiCSem.
₹2,067 Crore Investment Planned for Bhubaneswar Facility
The proposed semiconductor facility will come up at Info Valley in Bhubaneswar with an estimated investment of nearly ₹2,067 crore. According to the company, the integrated facility will combine wafer fabrication and assembly, testing, marking and packaging (ATMP) operations under one roof, strengthening India’s domestic semiconductor manufacturing ecosystem.
India’s First Approved Silicon Carbide Semiconductor Unit
The upcoming facility is expected to manufacture around 60,000 silicon carbide wafers annually. In addition, the facility aims to produce nearly 96 million SiC MOSFETs and diodes every year. The project is designed to support high-growth sectors such as electric vehicles, renewable energy, smart grids, industrial automation, 5G telecommunications, and data centre infrastructure.
Rising Demand for Silicon Carbide Semiconductors
Silicon carbide semiconductors are increasingly gaining importance in advanced power electronics because they can operate at higher temperatures, voltages, and switching frequencies compared to conventional silicon-based chips. As global investments in electric mobility, clean energy, and energy-efficient technologies continue to rise, industry analysts expect strong demand growth for SiC-based semiconductor components over the coming years.
Boost to India’s Semiconductor Manufacturing Ecosystem
The fiscal support agreement has been signed under the government’s Semicon India Programme, which aims to strengthen the country’s semiconductor manufacturing capabilities and reduce dependence on imported advanced chip technologies. Officials associated with the initiative described the project as a major milestone in building India’s compound semiconductor ecosystem. The Bhubaneswar facility is expected to enhance local manufacturing capacity for advanced semiconductor materials while supporting India’s broader electronics and industrial supply chain.
Strategic Push for High-Tech Manufacturing
The project also aligns with India’s larger strategy to attract investments in high-technology manufacturing sectors, including electronics, telecommunications, mobility, and renewable energy infrastructure. In recent years, the Indian government has accelerated efforts to establish a robust semiconductor ecosystem through fiscal incentives, policy support, and collaborations with private sector companies. As reported by manufacturingtodayindia.com, with increasing focus on energy-efficient electronic systems, compound semiconductors such as silicon carbide are emerging as critical technologies for next-generation industrial and mobility applications.
