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Paras Defence plans chip packaging plant

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Paras Defence will establish a greenfield advanced semiconductor packaging facility in Madhya Pradesh, India as it expands beyond its core defence and space markets.

Paras Defence and Space Technologies has announced plans to invest ₹6,200 crore through its subsidiary, Paras Semiconductors Pvt. Ltd., in a new advanced semiconductor packaging facility in Madhya Pradesh, India.

The project marks the company’s entry into semiconductor packaging alongside its existing operations in the defence and space sectors.

According to Paras Defence, the greenfield facility will support outsourced semiconductor assembly and test operations, as well as assembly, testing, marking and packaging activities.

Paras Semiconductors will lead the development of the project, which is intended to strengthen India’s domestic semiconductor manufacturing and packaging ecosystem.

The investment comes as India seeks to expand local capacity across semiconductor fabrication, assembly, testing and advanced packaging, reducing dependence on overseas supply chains.

However, Paras Defence has not yet disclosed which packaging technologies will be deployed at the facility or whether the plant will support advanced formats such as system-in-package, chiplets, fan-out packaging or 2.5D and 3D integration.

The company has also not provided details on production capacity, customer agreements, financing arrangements or the expected number of jobs to be created.

Information on government approvals, the construction schedule and the proposed commissioning date has also not been announced.

Further details are expected as the project progresses through planning, approval and development stages.