Paras Semiconductors Signs MoU with Madhya Pradesh for ₹6,200 Crore OSAT Facility on Ujjain-Indore Corridor
Paras Semiconductors Pvt. Ltd., the semiconductor arm of Paras Defence & Space Technologies Ltd., has signed a Memorandum of Understanding with the Government of Madhya Pradesh to establish a proposed ₹6,200 crore semiconductor packaging facility in the state. The agreement was announced on July 22.
As part of the arrangement, the state government has allotted 50 acres of land on the Ujjain-Indore Corridor for the proposed Outsourced Semiconductor Assembly and Test (OSAT) facility. The investment proposal remains subject to project execution and regulatory approvals.
The facility is planned to manufacture and package semiconductor devices for strategic and high-performance applications, including sensor technologies and optical and optronic systems. The company said it plans to build advanced semiconductor packaging capabilities at the site, with potential future expansion into AI chips and other advanced semiconductor technologies.
The project aligns with the Madhya Pradesh Semiconductor Policy 2025, under which the state is seeking investment across semiconductors, electronics manufacturing, artificial intelligence and data centres. It also forms part of the broader push under India's Semiconductor Mission, which is driving state-level competition to attract investment in fabrication, assembly, packaging and testing infrastructure.
If implemented, the facility would add to Madhya Pradesh's presence in India's semiconductor value chain and expand the country's domestic advanced packaging capabilities, while supporting employment generation in the state.