Madhya Pradesh signs MoU with Paras Semiconductors for ₹62 billion semiconductor facility

The Government of Madhya Pradesh has signed a Memorandum of Understanding with Paras Semiconductors to set up an advanced semiconductor packaging OSAT facility along the Ujjain-Indore Corridor with a proposed investment of ₹62 billion.

In a major development for India's high-technology manufacturing sector, the Government of Madhya Pradesh has signed a Memorandum of Understanding (MoU) with Paras Semiconductors to establish an advanced semiconductor packaging Outsourced Semiconductor Assembly and Test (OSAT) facility backed by a proposed investment of ₹62 billion. Under the strategic agreement, the state government has allotted 50 acres of land along the Ujjain-Indore Corridor to house the campus. Paras Semiconductors, the dedicated semiconductor arm of defence engineering major Paras Defence and Space Technologies Ltd., aims to deploy the facility to accelerate domestic manufacturing of critical electronic components for strategic and high-performance sensor applications.

The scope of work under the agreement entails establishing an advanced semiconductor packaging OSAT facility on a 50-acre site on the Ujjain–Indore Corridor. Leveraging advanced semiconductor manufacturing and packaging technologies, the facility aims to develop semiconductor devices for sensor technologies, optical and optronic systems, and other strategic applications in the near term. The facility also offers the potential to support future expansion into AI chips and other advanced semiconductor technologies as market opportunities evolve. Founded as a key growth division, Paras Semiconductors focuses on indigenous chip manufacturing and packaging, while parent firm Paras Defence and Space Technologies Ltd. brings over 40 years of experience in delivering IDDM products across land, naval, air, and space domains.

This initiative carries substantial analytical significance as it directly addresses India's reliance on offshore semiconductor packaging and testing facilities. By focusing on specialized chips for optronics, optical sensors, space research, and high-performance computing, the project helps secure local supply chains for critical defence and commercial applications. For the state of Madhya Pradesh, securing a capital-intensive OSAT project creates an anchor for a wider industrial ecosystem, bringing together raw material vendors, specialized engineering service providers, and technology partners into a unified regional cluster.

Aligning closely with the Government of Madhya Pradesh's Semiconductor Policy 2025, the development reinforces national self-reliance goals under the Aatmanirbhar Bharat initiative. Situated along the developing Ujjain–Indore technology corridor, the unit is expected to generate high-value technical employment, drive industry-academia research collaborations, and spur growth among regional micro, small, and medium enterprises (MSMEs). For global investors and electronics industry stakeholders, this investment signals expanding market opportunities in India's fast-growing semiconductor assembly, testing, and advanced packaging market segment.