Archean Chemical Loans Rs. 150 Cr to Subsidiary for Semiconductor Project
Archean Chemical Industries Ltd (ACIL) has provided a Rs. 150 crore loan to its wholly-owned subsidiary, Neun Infra Private Limited. This funding is critical for SiCSem Private Limited to procure essential machinery and maintain project timelines. SiCSem, approved under the India Semiconductor Mission, needs this interim capital while awaiting a Fiscal Support Agreement with the Government of India for its compound semiconductor manufacturing facility.
Archean Chemical Industries Limited (ACIL) has committed a significant financial injection, entering into a loan agreement with its Wholly Owned Subsidiary (WOS), Neun Infra Private Limited, for Rs. 150 Crores. This funding is strategically aimed at addressing the immediate capital requirements of SiCSem Private Limited. SiCSem, which is held by Neun Infra, is currently at a crucial juncture, needing to procure long-lead machinery, essential equipment, and related items to ensure its project stays on schedule. The urgency for this loan is driven by SiCSem's need to adhere to strict project timelines. The company has secured approval under the India Semiconductor Mission (ISM) framework for establishing a compound semiconductor and ATMP (Assembly, Test, Marking, and Packaging) manufacturing facility in India. While SiCSem awaits the formal execution of a Fiscal Support Agreement (FSA) with the Government of India, this interim funding from ACIL, channeled through Neun Infra, guarantees that initial capital commitments are met. This prevents potential delays in a project that is integral to India's burgeoning semiconductor industry and directly supports the advancement of the approved project's early stages. The article also mentions Archean Chemical's recent stock performance, with shares trading at Rs. 511.75 on BSE, highlighting market interest in these developments and ACIL's commitment to supporting its subsidiaries in key national initiatives.
