6 Chemical stocks to Benefit from India’s $100 Billion Semiconductor Boom

SYNOPSIS: India’s semiconductor push under ISM 2.0 is driving opportunities for specialty chemical companies supplying critical materials, positioning them to benefit from growing chip demand and domestic manufacturing expansion.

Semiconductors quietly power almost every aspect of modern life, from smartphones and computers to cars, telecom, defence systems and AI. As digital adoption accelerates, chips have become the invisible engine behind economic growth and technological advancement. Recognising this strategic importance, India has been steadily building its semiconductor ecosystem under India Semiconductor Mission (ISM) 1.0 – strengthening chip design capabilities while also laying the groundwork for fabrication, assembly and testing infrastructure across the country.

This progress reflects the broader vision of Aatmanirbhar Bharat and India’s transition from policy formulation to production readiness. Building on this momentum, India is moving to ISM 2.0 to further strengthen the country’s position as a reliable and competitive participant in the global semiconductor network.

The Union Budget 2026-27 marked an important step for the formal announcement of ISM 2.0. This new phase signals a clear policy push to deepen domestic semiconductor capabilities at a time when chips underpin every critical digital and industrial system.

ISM 2.0 will focus on producing semiconductor equipment and materials in India, designing full-stack Indian semiconductor intellectual property, and fortifying both domestic and global supply chains. An allocation of Rs. 1,000 crore has been made for ISM 2.0 for FY27, with a strong focus on industry-led research initiatives and training centres to drive technology development and create a future-ready skilled workforce.

Against this backdrop, below are six chemical stocks that are not directly engaged in manufacturing chips but are strategically positioned to benefit from the rapid expansion of the semiconductor and electronics ecosystem in India.

Gujarat Fluorochemicals Limited

During Friday’s trading session, shares of Gujarat Fluorochemicals closed in the red at Rs. 3,055.4 on BSE, with the market capitalisation of Rs. 33,563.6 crore. Gujarat Fluorochemicals Limited, a key entity within the INOXGFL Group, is engaged in the business of manufacturing bulk chemicals, fluorochemicals, fluoropolymers, battery chemicals and allied activities.

The company’s diverse offerings encompass fluoropolymers such as PTFE, PVDF, and FKM, in addition to fluoro-specialty chemicals, refrigerants, and industrial chemicals. It develops advanced fluoropolymers for electric vehicles (EVs), semiconductors, and the automotive sectors.

As per its FY25 annual report, the company’s Dahej-A is developing FFKM grades specifically for semiconductor applications. These will meet the stringent purity and thermal stability requirements of advanced fabs, helping to enhance yield and equipment efficiency. Additionally, the company has developed ultra-high purity PFA (perfluoro alkoxy) grades tailored for extrusion and injection moulding processes to meet the stringent requirements of the semiconductor industry.

Navin Fluorine International Limited

During Friday’s trading session, shares of Navin Fluorine closed in the red at Rs. 6,034.5 on BSE, with the market capitalisation of Rs. 30,926 crore.

Navin Fluorine International Limited has one of the largest integrated fluorochemicals complexes in India. It primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers contract research and manufacturing services.

As per the ICICI Securities report, the company is in the early stages of evaluating projects in the advanced materials value chain, where it will leverage its strengths through backward integration in anhydrous hydrofluoric acid (AHF) to produce high-grade chemicals (such as electronic-grade hydrofluoric acid (HF), BF3 for semiconductor applications). Moreover, the segment will be largely export-driven.

Archean Chemical Industries Limited

During Friday’s trading session, shares of Archean Chemical closed in the green at Rs. 607 on BSE, with the market capitalisation of Rs. 7,494 crore. Archean Chemical Industries Limited (ACIL) is an India-based specialty chemicals manufacturing company that produces and supplies marine chemicals. The company is engaged in the production and supply of industrial salt, liquid bromine, and sulphate of potash (SOP). ACIL serves a range of industries, including agriculture, pharmaceuticals, water treatment, aluminium, glass, and textiles.

During Q3 FY26, the company made a strategic investment in Clas-SiC Wafer Fab Limited, subscribing to primary shares worth GBP 10 million. In addition, out of a planned secondary purchase of GBP 5 million, the company has already invested GBP 2.5 million in FY25, with the remaining GBP 2.5 million expected to be completed by May 2025.

This investment provides the company with exclusive access to advanced silicon carbide (SiC) technology in India, strengthening its competitive positioning in the domestic market. The move is aligned with Archean’s broader strategy to expand into the semiconductor space, supported through its association with SiCSem Private Limited.

Neogen Chemicals Limited

During Friday’s trading session, shares of Neogen Chemicals closed in the red at Rs. 1,173.8 on BSE, with the market capitalisation of Rs. 3,097 crore. Neogen Chemicals Limited is one of India’s leading manufacturers of Bromine-based and lithium-based specialty chemicals, with a product portfolio of over 258 products that comprise organic and inorganic chemicals. 

Its products are used in pharmaceutical and agrochemical intermediates, semiconductors, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, aroma chemicals, flavours and fragrances, specialty polymers, and chemicals & vapour absorption chillers.

In FY25, to offset continued weakness in agrochemicals, Neogen expanded into sectors such as semiconductors, flavours & fragrances and industrial CSM, showcasing the agility of its business model.

Tata Chemicals Limited

During Friday’s trading session, shares of Tata Chemicals closed in the red at Rs. 605.5 on BSE, with the market capitalisation of Rs. 15,425 crore. Tata Chemicals Limited has a global presence with key subsidiaries in the United States of America (USA), United Kingdom (UK) and Kenya that are engaged in the manufacture and sale of soda ash, industrial salt and related products.

The company is one of the leading suppliers of granular soda ash, light soda ash, and sodium bicarbonate to the metal-processing industry, while nickel hydroxide cake is a product of its lithium-ion battery recycling business.

In addition, the company supplies critical materials used in electronics and semiconductor manufacturing, contributing to improved performance and efficiency in device production.

Tata Chemicals has also been recognised for its innovation in Nano Zinc Oxide (nZnO), which finds applications in semiconductor devices, sensors, and transparent conductive films. These properties enhance device efficiency, durability, and performance across various electronic applications.

Furthermore, Nano Zinc Oxide offers a wide range of industrial uses due to its antimicrobial, UV-blocking, and reinforcement characteristics. Its nano-scale structure and semiconductor properties make it a versatile material across multiple advanced technology applications.

Acutaas Chemical Limited

During Friday’s trading session, shares of Acutaas Chemical closed in the red at Rs. 2,516.9 on BSE, with the market capitalisation of Rs. 20,606 crore. Acutaas Chemicals Limited, formerly known as Ami Organics Limited, is a specialty chemicals manufacturer serving a wide range of industries, including pharmaceuticals, semiconductors, battery chemicals, personal care, agrochemicals, and fine chemicals. Its core strength lies in the research-driven development and manufacturing of advanced pharmaceutical intermediates used in both regulated and generic APIs, as well as intermediates for New Chemical Entities (NCEs).

In addition, the company’s offerings include parabens and their formulations, methyl salicylate, and niche key starting materials (KSMs) used in cosmetics and other industrial segments. 

Executive Chairman and Managing Director of the company, Naresh Patel, noted that the company continues to strengthen its core pharmaceutical intermediates business by adding CMO/CDMO opportunities, while also reinforcing its long-term foundation by scaling its battery chemicals and semiconductor chemicals verticals. These segments, which are currently under active capital investment, are progressing steadily toward scale and are expected to evolve into independent, self-sustaining growth engines over the next three years, contributing meaningfully to overall topline growth.

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