Paras Defence to Set Up $644 Million Semiconductor Packaging Facility

Paras Semiconductors Private Limited, a subsidiary of Paras Defence and Space Technologies Limited, signed a Memorandum of Understanding with the MP State Electronics Development Corporation on 22 July 2026. The MoU covers a greenfield advanced integrated circuit packaging and Outsourced Semiconductor Assembly and Test facility in the Indore-Ujjain region of Madhya Pradesh.

OSAT and Advanced Packaging

OSAT stands for Outsourced Semiconductor Assembly and Test, a segment of the semiconductor value chain that covers assembly, packaging, and testing of chips. The proposed facility includes 3D heterogeneous integration, 2.5D and 3D advanced packaging, hybrid bonding, ultra-high-density fan-out packaging, chiplet integration, wafer bumping, and flip-chip assembly.

Investment and Industrial Capacity

The project involves a proposed investment of about ₹6,200 crore, which is equivalent to about US$644 million. The facility is planned to support domestic semiconductor manufacturing capacity and align with the India Semiconductor Mission.

Employment and Application Areas

The project is expected to create more than 2,500 direct jobs. It is also linked with ancillary industries and supplier networks in Madhya Pradesh. The facility is intended to support semiconductor devices for sensor technologies and optical and optronic systems, with future expansion into artificial intelligence chips.

Important Facts for Exams

• OSAT is a semiconductor back-end process that includes assembly, packaging, and testing.
• Advanced packaging methods include 2.5D integration, 3D integration, and hybrid bonding.
• Chiplet integration is used to combine multiple smaller dies into one package.
• The India Semiconductor Mission is a Government of India programme for semiconductor and display manufacturing.

Semiconductor Ecosystem in India

Semiconductor packaging facilities are part of the back-end manufacturing chain and are distinct from wafer fabrication plants. India has promoted semiconductor manufacturing through policy support, capital incentives, and state-level industrial partnerships.