Three chemical companies are positioning themselves for India's emerging semiconductor opportunity through different strategic approaches. Archean Chemical Industries is establishing India's first commercial silicon carbide manufacturing facility through its subsidiary SiCSem Private Limited, while Acutaas Chemicals is expanding its semiconductor chemicals capabilities through photoresist chemicals alongside its existing specialty chemicals business. According to reports from The Financial Express, these companies are capitalizing on the growing demand from artificial intelligence, electric vehicles, renewable energy, and data centres. The semiconductor sector has quietly become one of the most important pieces of the global economy, with the world's most advanced chips manufactured by a tiny handful of companies in the US and China, making India's semiconductor mission crucial for supply chain diversification.
Archean Chemical Industries is investing ₹2,067 crore in Phase 1 of its silicon carbide manufacturing facility at Bhubaneswar, Odisha. The integrated fabrication and packaging unit can produce 60,000 wafers and 960 lakh packaged units of SiC MOSFETs and power devices annually. As reported by The Financial Express, the company executed a Fiscal Support Agreement with the India Semiconductor Mission on May 11, 2026, making it eligible for fiscal support up to 75% of eligible capital expenditure. Construction is scheduled to begin in early September with production targeted within 24-27 months.
CG Power and Industrial Solutions has emerged as a significant player in India's semiconductor sector through its subsidiary Axiro. Axiro has established a strong foundation in semiconductor design with over 150 IPs in front-end technologies and more than 200 chip designs that have been deployed in over 600 million chips globally. The company generated approximately ₹5 billion in revenue in FY26, anchored by the RF business acquired from Renesas Electronics. CG Semi inaugurated its G1 OSAT facility in Sanand, Gujarat in August 2025, which is now operational at a peak capacity of 0.5 million units per day. According to the Annual Report FY26, CG Power plans to further scale its semiconductor manufacturing capacity to 14.5 million chips per day with the upcoming commissioning of its G2 facility, with the G1 and G2 facilities together representing an estimated project investment of around ₹760 billion.
Kaynes Technologies is expanding through its subsidiary Kaynes Semicon, which operates across specialized engineering domains supporting semiconductor products from device integration through qualification and production release. The company currently operates a 1,200 sq m operational pilot OSAT facility, while more than 19,000 sq m of semiconductor cleanroom infrastructure is under development. According to The Financial Express, Kaynes Semicon is in advanced discussions with global technology companies to expand into semiconductor wafer fabrication, compound semiconductors, advanced packaging, and materials and equipment manufacturing through joint ventures and technology partnerships. The company plans to submit project applications under the next phase of the India Semiconductor Mission by mid-August, subject to the government opening the application window.
Acutaas Chemicals reported strong Q1FY27 performance with revenue surging 59.1% year-on-year to ₹329.7 crore and EBITDA growing 122.1% to ₹113.1 crore with margins at 34.3%. As reported by The Financial Express, the company expects 4 validated CDMO products to contribute from H2FY27, each generating ₹50-100 crore annually at peak. CG Power and Industrial Solutions is trading at a P/E multiple of 86.39x as of August 10, 2026, compared with the industry P/E of 34.5x, with the stock trading 37% higher so far in 2026. Kaynes Technologies is trading at a P/E multiple of 57.27x compared with the industry P/E of 31.3x, down around 5% so far in 2026. SPEL Semiconductor is trading at a P/E multiple of 29.33x compared with the industry P/E of 30.5x, up 11% so far in 2026.
