India's Chip Boom Fuels Chemical Giants

India's semiconductor opportunity is expanding beyond chipmakers, attracting chemical and materials suppliers. Two chemical companies, Archean Chemicals and Acutaas Chemicals, are making significant moves into this sector.

Archean Chemicals is diversifying into silicon carbide (SiC) manufacturing and packaging through its subsidiary SiCSem Private Limited. A new facility in Bhubaneswar, Odisha, is set to produce SiC MOSFETs and power devices, serving critical sectors like electric vehicles and renewable energy. This project, supported by the India Semiconductor Mission, involves an initial capital expenditure of ₹2,067 crore, with production expected to commence within 24 to 27 months from May 11, 2026.

Acutaas Chemicals is enhancing its semiconductor chemicals portfolio, particularly in photoresist chemicals, driven by demand from artificial intelligence applications. Its subsidiary, Indichem, is constructing a plant in South Korea, expected to contribute revenue from FY28. Acutaas anticipates its specialty chemicals business, including semiconductor products, will significantly shift its revenue mix over the next three years.

Both companies face execution and ramp-up risks as they navigate these new ventures. Archean deals with high capex and construction timelines, while Acutaas manages customer validation and market entry. Their success hinges on converting these substantial investments into sustainable revenue and returns within India's developing semiconductor value chain.