Paras Semiconductors to Build ₹6,200 Crore Chip Packaging Hub in Madhya Pradesh

Paras Semiconductors, the specialized semiconductor arm of Paras Defence & Space Technologies Ltd., has announced a major investment of ₹6,200 crore to establish a greenfield Outsourced Semiconductor Assembly and Test (OSAT) facility. The project is set to be located in the Ujjain–Indore Corridor of Madhya Pradesh, a region increasingly being positioned as a strategic hub for high-tech manufacturing. The company has already secured 50 acres of land for the facility following a formal Memorandum of Understanding with the state government.

The new plant will concentrate on advanced packaging technologies, which are critical for the modern semiconductor supply chain. While the initial focus is on assembly and testing, the facility is designed with the flexibility to expand into AI chip production and other advanced semiconductor applications. This investment is a significant boost to the state's Semiconductor Policy 2025 and aligns with the national objectives of the India Semiconductor Mission to create a robust, self-sustaining domestic ecosystem for chip manufacturing.

Beyond the technological advancements, the project is expected to generate substantial employment opportunities in the region. By establishing a high-end OSAT facility, Madhya Pradesh aims to attract further investment in the semiconductor value chain, fostering a cluster of related industries. This development is a key milestone in India's broader effort to reduce reliance on global semiconductor hubs and build domestic capabilities in critical hardware technologies, ensuring long-term security and growth for the nation's electronics and defense sectors.