Paras Defence & Space Technologies has announced a major investment in India’s semiconductor sector, with its subsidiary Paras Semiconductors Private Limited signing a Memorandum of Understanding (MoU) with the Government of Madhya Pradesh to establish a ₹6,200 crore semiconductor packaging and testing facility.
The proposed project will focus on Outsourced Semiconductor Assembly and Test (OSAT) operations, an essential part of the semiconductor manufacturing process where chips are assembled, packaged, and tested before being supplied for commercial and strategic applications.
The investment is expected to strengthen India’s domestic semiconductor ecosystem and support the government’s push to build a self-reliant electronics supply chain. The facility is expected to cater to industries including defence, aerospace, automotive, telecommunications, industrial electronics, and consumer technology.
Paras Defence said the initiative reflects its long-term strategy to expand into high-value technology manufacturing while contributing to India’s semiconductor ambitions. The company believes the project will help reduce dependence on imported semiconductor packaging services and enhance indigenous capabilities in advanced electronics.
The semiconductor facility is also expected to generate employment opportunities and attract ancillary industries to Madhya Pradesh, further supporting the state’s emergence as a destination for high-technology manufacturing. The project aligns with India’s broader efforts to become a global hub for semiconductor production and advanced electronics under the Make in India initiative.