Paras Defence Arm Signs MoU for ₹6,200 Crore Semiconductor Packaging Facility in Madhya Pradesh
Paras Semiconductors Private Limited, a wholly-owned subsidiary of Paras Defence and Space Technologies Limited, has signed a memorandum of understanding with the Madhya Pradesh State Electronics Development Corporation (MPSeDC) to set up a greenfield Outsourced Semiconductor Assembly and Test (OSAT) facility in Madhya Pradesh, involving an investment of approximately ₹6,200 crore.
The facility will be located on a 50-acre site along the Indore-Ujjain corridor. An OSAT plant packages, assembles and tests foundry-made silicon wafers to produce finished semiconductor chips. The plant will undertake advanced IC packaging operations including 3D heterogeneous integration, 2.5D/3D advanced packaging, hybrid bonding, ultra-high-density fan-out packaging, chiplet integration, wafer bumping and flip-chip assembly, along with testing and reliability screening.
The facility will produce semiconductor devices for thermal imaging systems, sensors and high-reliability military electronics, addressing an estimated annual domestic requirement of around ₹2,500 crore for sensors and chipsets driven by India's defence indigenisation push. The project is expected to generate more than 2,500 direct jobs.
The MoU forms part of India's broader semiconductor manufacturing push under the India Semiconductor Mission (ISM 2.0). It follows other recent investment commitments in Madhya Pradesh's electronics and data centre ecosystem, including a $2 billion (about ₹19,000 crore) investment announced by Spanish technology firm Submer Group for