July 22, 2026 at 10:16 AM 2 min readtechNews Insights
Paras Semiconductors to Build ₹62 Billion OSAT Facility in MP
The new facility in the Indore-Ujjain region will focus on advanced semiconductor packaging.
[Strategic Semiconductor Investment]:
Paras Semiconductors, a subsidiary of Paras Defence and Space Technologies, has signed a Memorandum of Understanding with the Madhya Pradesh government to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility. Located in the Indore-Ujjain region, this project represents a substantial investment of ₹62 billion. The facility will focus on advanced semiconductor packaging for strategic applications, with plans to potentially expand into AI chip production in the future.
[Alignment with National Mission]:
This development is a key component of the broader India Semiconductor Mission (ISM) 2.0, which has been approved by the central government with an outlay of ₹1.27 trillion. The mission aims to build a comprehensive semiconductor value chain in India, covering everything from chip design and manufacturing equipment to new fabrication plants and talent development. By strengthening the ATMP and OSAT ecosystem, the government is working to reduce reliance on global supply chains for critical electronic components.
[Building Domestic Capability]:
The success of the first phase of the India Semiconductor Mission, which saw 12 projects approved with investments exceeding ₹1.64 trillion, has paved the way for this new expansion. With companies like Micron, Kaynes, and CG Semi already commencing commercial production, the addition of the Paras Semiconductors facility marks another milestone in India's journey toward becoming a global semiconductor hub. This investment will not only create high-tech jobs but also enhance India's strategic capabilities in the rapidly evolving global electronics landscape.
Pulse Intelligence
Context & ImpactContext & Background
- The India Semiconductor Mission (ISM) was launched to boost domestic chip manufacturing.
- The government has been actively courting investments for semiconductor packaging facilities.
- Several major players have already begun operations under the first phase of the ISM.
Key Consequences
- Expansion of India's semiconductor packaging and testing capacity.
- Creation of high-tech employment opportunities in the Indore-Ujjain region.
- Increased domestic capability for strategic and AI-focused semiconductor applications.
Market & Economic Impact
Not applicable.
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