Paras Defense Subsidiary to Invest ₹62 Billion in Madhya Pradesh Semiconductor Facility
Paras Defense and Space Technologies is preparing for a major push into India’s fast-growing semiconductor sector through its subsidiary, Paras Semiconductors. The company plans to invest ₹62 billion, or approximately US$643.79 million, to set up a semiconductor packaging and testing facility in Madhya Pradesh.
The proposed project marks an important step for India’s ambitions to build a stronger domestic chip ecosystem. Semiconductor packaging and testing are critical stages in the chip supply chain, ensuring that chips are assembled, protected, tested for performance, and prepared for use in electronic devices, defense systems, communication equipment, aerospace technology, and other advanced applications.
For Paras Defense and Space Technologies, the investment aligns closely with its focus on high-precision engineering, defense electronics, and space technology. By entering semiconductor packaging and testing, the company could strengthen its role in strategic sectors where reliable and locally supported chip infrastructure is becoming increasingly important.
Madhya Pradesh is also expected to benefit from the investment, as a large-scale semiconductor facility could attract supporting industries, create skilled jobs, and help position the state as a rising destination for electronics and advanced manufacturing. As India continues to encourage domestic semiconductor production, projects of this scale could play a key role in reducing dependence on overseas supply chains.
The planned facility by Paras Semiconductors adds momentum to India’s broader semiconductor mission, which aims to develop local capabilities across chip design, manufacturing, assembly, packaging, and testing. With demand for semiconductors rising across automotive, telecom, defense, consumer electronics, and industrial sectors, investments like this could help India capture a larger share of the global semiconductor value chain.
If executed successfully, the ₹62 billion project may become a significant milestone for Paras Defense and Space Technologies and a meaningful contribution to India’s long-term goal of becoming a competitive hub for semiconductor manufacturing and advanced electronics.
