Paras Semiconductors, the semiconductor arm of Paras Defence & Space Technologies Ltd has signed an MoU with the Government of Madhya Pradesh to set up an advanced semiconductor packaging OSAT facility in the state, with a proposed investment of ₹6,200 crore.
The state government has allotted fifty acres of land on the Ujjain–Indore Corridor for the project.
Chief Minister Dr Mohan Yadav welcomed the investment, saying: “Madhya Pradesh is steadily emerging as a preferred destination for high-technology manufacturing, backed by progressive policies, robust infrastructure and an industry-friendly ecosystem. We welcome Paras Semiconductors’ proposed investment and encourage the company, along with other leaders in the defence, space and semiconductor sectors, to leverage the immense opportunities our state has to offer.”
Land allocation and investment
As part of the agreement, Madhya Pradesh has allotted fifty acres on the Ujjain–Indore Corridor for the proposed facility.
Backed by the ₹6,200 crore investment, the project is expected to strengthen India’s semiconductor manufacturing ecosystem, speed up development of semiconductor devices for strategic applications, generate employment, and reinforce Madhya Pradesh’s positioning as a hub for advanced manufacturing.
Paras Semiconductor was set up to build advanced semiconductor capabilities for strategic and high-performance sensor applications.
The company plans to develop devices for sensor technologies, optical and optronic systems, with potential future expansion into AI chips as market opportunities evolve — building on Paras Defence’s existing expertise in optics and optronics.
Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies Ltd, said: “The signing of this MoU marks a significant milestone in Paras Semiconductor’s journey towards building indigenous semiconductor capabilities in India.”
Santosh Kumar, Chief Executive Officer, Paras Semiconductor, said: “The next phase of India’s semiconductor journey will be defined not just by manufacturing capacity, but by the strength of the ecosystems we build around it. The Ujjain–Indore Corridor presents a unique opportunity to combine world-class infrastructure with a progressive policy environment to create a globally competitive semiconductor ecosystem.”
The project aligns with Madhya Pradesh’s Semiconductor Policy 2025 and its broader push to build an integrated ecosystem spanning semiconductors, electronics manufacturing, AI and data centres.
Beyond direct economic benefits, the facility is expected to foster ancillary industries, support MSMEs and supplier networks, and create opportunities for skilled talent in the region.
