Paras Defence will invest ₹6,200 crore to establish an advanced semiconductor packaging and testing facility in Madhya Pradesh, supporting India’s Semiconductor Mission and strengthening the domestic chip manufacturing ecosystem.

The greenfield facility, planned in the Indore-Ujjain corridor, will be developed through Paras Semiconductors Pvt. Ltd., a wholly owned subsidiary of Paras Defence. The state government has allotted around 50 acres for the project, which will focus on semiconductor packaging, testing, chiplet integration, wafer bumping, flip-chip assembly, and reliability assessment.

This investment is among the largest private contributions to India’s chip ecosystem, aiming to reduce dependence on overseas packaging facilities and enhance the country’s semiconductor value chain for applications in consumer electronics, automotive systems, telecom equipment, AI hardware, and defense technologies.

The MoU with Madhya Pradesh’s Department of Science and Technology, executed through MP State Electronics Development Corporation (MPSeDC), positions the state as a key destination for semiconductor manufacturing alongside established electronics hubs.

• Investment: ₹6,200 crore
• Facility type: Greenfield semiconductor packaging and testing plant
• Location: Indore-Ujjain corridor, Madhya Pradesh, India
• Land allocation: 50 acres
• Capabilities: Advanced chip packaging, chiplet integration, wafer bumping, flip-chip assembly, testing, reliability processes
• Impact: Strengthens domestic semiconductor supply chain, reduces import dependence, supports AI, automotive, industrial and defense applications

Industry experts note that packaging and testing facilities are critical to converting wafers into finished chips ready for commercial use. This development further positions Madhya Pradesh as a high-value technology manufacturing destination and reinforces India’s broader strategy to grow a self-reliant semiconductor ecosystem.