Paras Semiconductor, the semiconductor business of Paras Defence & Space Technologies Ltd. has signed a Memorandum of Understanding (MoU) with the Government of Madhya Pradesh to establish a proposed advanced Outsourced Semiconductor Assembly and Test (OSAT) facility in the state. The project involves a proposed investment of ₹6,200 crores and is expected to play an important role in strengthening India’s semiconductor manufacturing capabilities.
Under the agreement, the Government of Madhya Pradesh has allotted approximately 50 acres of land along the Ujjain-Indore Corridor for the proposed facility. The project is expected to support India’s growing semiconductor ecosystem by enhancing advanced packaging capabilities, creating employment opportunities and encouraging the development of ancillary industries and supplier networks.
Paras Semiconductor was established to build advanced semiconductor capabilities for strategic and high-performance sensor applications. Leveraging the expertise of Paras Defence & Space Technologies in optics and optronics, the company intends to develop semiconductor devices for sensor technologies, optical systems, optronic applications and other strategic sectors. The proposed facility also offers future expansion opportunities into AI chips and other advanced semiconductor technologies as market demand evolves.
The project aligns with the Government of Madhya Pradesh’s Semiconductor Policy 2025, which aims to position the state as a leading destination for semiconductor manufacturing, electronics production, artificial intelligence, data centres and advanced technology investments. The Ujjain-Indore Corridor is rapidly emerging as a strategic industrial hub supported by modern infrastructure, industry-friendly policies, research collaborations and skill development initiatives.
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Commenting on the development, Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies Ltd., said: “The signing of this MoU marks a significant milestone in Paras Semiconductor’s journey towards building indigenous semiconductor capabilities in India. We are honoured by the confidence and support extended by the Government of Madhya Pradesh and sincerely appreciate the state’s progressive vision, industry-friendly policies and commitment to creating an enabling ecosystem for advanced manufacturing. The allocation of land on the Ujjain-Indore Corridor reflects the state’s intent to foster long-term partnerships with industry. Through this investment, we look forward to contributing to Madhya Pradesh’s industrial growth, creating high-value employment, nurturing a vibrant supplier ecosystem and supporting India’s vision of becoming a globally competitive semiconductor manufacturing destination.”
Commenting on the strategic significance of the project, Santosh Kumar, Chief Executive Officer, Paras Semiconductor, said: “The next phase of India’s semiconductor journey will be defined not just by manufacturing capacity, but by the strength of the ecosystems we build around it. The Ujjain-Indore Corridor presents a unique opportunity to combine world-class infrastructure with a progressive policy environment to create a globally competitive semiconductor ecosystem. Ujjain, the sacred city of Mahakal and one of India’s oldest centres of knowledge and civilisation, symbolises a remarkable convergence of heritage and the future. It is an honour for Paras Semiconductors to contribute to this transformation and be part of Madhya Pradesh’s vision of building advanced semiconductor capabilities. Through this project, we aim to develop semiconductor devices for strategic applications, strengthen domestic technology capabilities and contribute to India’s long-term technological self-reliance.”
Welcoming the investment proposal, Dr. Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, said: “Madhya Pradesh is steadily emerging as a preferred destination for high-technology manufacturing, backed by progressive policies, robust infrastructure and an industry-friendly ecosystem. We welcome Paras Semiconductors’ proposed investment and encourage the company, along with other leaders in the defence, space and semiconductor sectors, to leverage the immense opportunities our state has to offer. The Ujjain-Indore Corridor is being developed as a strategic hub for advanced manufacturing, and we remain committed to providing responsive governance, world-class infrastructure and timely facilitation to enable such transformative investments. Together, we can strengthen India’s capabilities in advanced technologies and contribute to the vision of Aatmanirbhar Bharat.”
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Beyond establishing an advanced semiconductor packaging facility, the proposed investment is expected to accelerate the growth of the regional semiconductor ecosystem by supporting MSMEs, attracting technology partnerships, encouraging research and innovation, and generating opportunities for a highly skilled workforce. The project is also expected to contribute to India’s long-term objective of building a resilient domestic semiconductor supply chain.
As India continues to expand its semiconductor ecosystem through investments in manufacturing, advanced packaging, chip design, testing and electronics manufacturing services, projects such as this are expected to strengthen the country’s technological competitiveness. Paras Semiconductor’s proposed facility represents another significant step toward enhancing domestic semiconductor capabilities while supporting innovation-led industrial growth and reinforcing Madhya Pradesh’s position as an emerging destination for advanced technology manufacturing.
