Paras Semiconductors Private Limited has signed a memorandum of understanding with the Madhya Pradesh government to facilitate the establishment of an advanced semiconductor packaging facility in the state.
The company, a subsidiary of Paras Defence and Space Technologies Limited, proposes to invest approximately ₹6,200 crore in the greenfield project. The facility is planned for the Indore-Ujjain region and will operate as an outsourced semiconductor assembly and test, or OSAT, plant.
Under the agreement, Paras Semiconductors will work with the Department of Science and Technology through the Madhya Pradesh State Electronics Development Corporation. The two parties will combine their resources and expertise to support the proposed facility’s establishment.
The plant is expected to undertake advanced integrated-circuit packaging processes, including 2.5D and 3D packaging, three-dimensional heterogeneous integration, hybrid bonding, ultra-high-density fan-out packaging and chiplet integration. Its planned capabilities also include wafer bumping, flip-chip assembly, semiconductor testing and reliability assessment.
Advanced packaging has become an important part of semiconductor production as chip manufacturers combine different processors, memory components and specialised computing units within integrated systems. Technologies such as chiplets and heterogeneous integration are increasingly being used in processors developed for artificial intelligence, high-performance computing, telecommunications, automotive electronics and defence applications.
The memorandum represents an initial agreement to collaborate on the project. Details including the construction schedule, production capacity, employment potential, financing structure and expected commencement of commercial operations have not yet been disclosed. The proposed investment will also be subject to the required regulatory approvals and completion of the project’s implementation arrangements.
The announcement expands Madhya Pradesh’s participation in India’s developing semiconductor ecosystem, which has so far attracted projects covering chip fabrication, assembly, testing and packaging. The Indore-Ujjain region is being positioned as an emerging destination for electronics and advanced-manufacturing investments.
Paras Defence and Space Technologies is an Indian defence-engineering company headquartered in Mumbai. The company develops products and solutions across defence and space optics, defence electronics, electromagnetic pulse protection and heavy engineering. Paras Semiconductors was established as its subsidiary to pursue opportunities in semiconductor technologies and advanced electronics.
