Here’s why Archean Chemicals shares surged over 10% on Wednesday

Here’s of Archean Chemicals Ltd. have surged as much as 10% on Wednesday, August 13, after a positive development under the India Semiconductor Mission (ISM).The company, in a exchange filing said that the Union Cabinet had approved the proposal of SiCSem Pvt. Ltd., which is a subsidiary of Archean Chemicals, under the ISM, to setup a Silicon Carbide-based Compound Semiconductor fab in Info Valley, Bhubaneshwar, Odisha.

SiCSem Pvt. Ltd. is collaborating with Clas-SiC Wafer Fab Ltd., UK, to establish an integrated facility of Silicon Carbide-based Compounded Semiconductor fab.

This will become the first commercial compound fab in the country with an annual capacity of 60,000 wafers and a packaging capacity of 96 million units.The products that are proposed to be manufactured in this unit will have applications in Missiles, Defence Equipment, Electric Vehicles, Railways, Fast Chargers, Data Centre Racks, Consumer Appliances, and Solar Power Inverters, Archean’s exchange filing stated.

This proposed unit is likely to be set up with an estimated capex of ₹2,067 crore.

Shares of Archean Chemicals are trading with gains of 9.6% at ₹714.05. With today’s move, the stock has also turned positive on a year-to-date basis.