Paras Defence and Space Technologies has declared a ₹6,200 crore investment to build an advanced semiconductor packaging facility in Madhya Pradesh.
The move marks one of the biggest private investments in India’s growing chip manufacturing ecosystem.
The project will be developed through its wholly owned subsidiary, Paras Semiconductors Pvt. Ltd., following the signing of a memorandum of understanding (MoU) with the Madhya Pradesh government’s Department of Science and Technology, acting through the MP State Electronics Development Corporation (MPSeDC).
The announcement comes as India continues to expand domestic semiconductor manufacturing under the India Semiconductor Mission.
Also Read: Paras Defence Wins Exclusive India Rights to Build Guardian-1 Counter-Drone Interceptor
Greenfield Facility Planned for the Indore-Ujjain Region
The proposed greenfield facility will come up in the Indore-Ujjain corridor with a planned investment of around ₹6,200 crore. As per the information given by the company, the plant will focus on semiconductor packaging and testing.
This important stage prepares chips for use in products ranging from consumer electronics to automotive systems, telecom equipment, artificial intelligence (AI) hardware and defence technologies. The state government has allotted around 50 acres of land for the project as part of the agreement.
Also Read: Paras Defence Develops Portable Drone Detection and Jamming System
India’s Semiconductor Manufacturing Ecosystem Strengthens Further
Paras Semiconductors said the facility will handle advanced chip packaging, chiplet integration, wafer bumping, flip-chip assembly, testing and reliability processes. These capabilities are expected to strengthen India’s semiconductor value chain and reduce reliance on overseas packaging facilities, an area where the country has traditionally depended on imports.
The investment also supports Madhya Pradesh’s goals to become a semiconductor manufacturing destination alongside established electronics hubs.
For Paras Defence, the project will expand its presence beyond defence technologies into the broader semiconductor sector, where demand continues to rise across AI, electric vehicles, industrial automation and next-generation communications.
Why the Announcement Matters?
India has been steadily attracting investments in semiconductor manufacturing through policy support and incentives aimed at building a domestic chip ecosystem.
Industry experts see packaging and testing facilities as an essential part of that strategy because they enable locally manufactured and imported semiconductor wafers to be converted into finished chips ready for commercial use.
With this latest investment, Paras Defence joins a growing list of companies backing India’s semiconductor ambitions while giving Madhya Pradesh another major project in its drive to attract high-value technology manufacturing.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
