Paras Semiconductors to Invest ₹6,200 Crore in Semiconductor Facility in Madhya Pradesh

Paras Semiconductors Private Limited, a subsidiary of Paras Defence and Space Technologies Ltd., has announced plans to invest approximately ₹6,200 crore (around $745 million) to establish a greenfield advanced semiconductor packaging and testing facility in the state of Madhya Pradesh.

The proposed Outsourced Semiconductor Assembly and Test (OSAT) facility will be located in the Indore-Ujjain region. Its focus will be on advanced integrated circuit (IC) packaging, assembly, and testing operations, aiming to bolster India's domestic semiconductor manufacturing capabilities. The project follows a Memorandum of Understanding (MoU) with the Madhya Pradesh State Electronics Development Corporation (MPSeDC).

The facility is set to incorporate advanced semiconductor technologies, including 3D heterogeneous integration, 2.5D and 3D advanced packaging, chiplet integration, and high-density fan-out packaging. These technologies are crucial for meeting the demand for higher-performance chips required in sectors such as artificial intelligence (AI), automotive electronics, data centers, and telecommunications.

This investment represents a significant step in expanding India's semiconductor value chain beyond traditional manufacturing hubs. The Madhya Pradesh government is supporting the initiative through measures such as land allocation. The development aligns with India's broader national strategy to build comprehensive domestic capabilities in the semiconductor sector, from design and fabrication to advanced packaging and testing.

The establishment of the OSAT facility is expected to strengthen the resilience of India's semiconductor supply chain, foster technological partnerships, and generate high-skilled employment opportunities. It addresses the growing global demand for semiconductors driven by trends in AI, cloud computing, and electric vehicles.