Paras Semiconductors, the semiconductor division of Paras Defence & Space Technologies Ltd, has entered into an MoU with the Madhya Pradesh Government to establish a cutting-edge semiconductor packaging OSAT facility in the region, with an intended investment of Rs.6,200 crore.

The state administration has allocated fifty acres of land along the Ujjain–Indore Corridor for the initiative.

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Chief Minister Dr Mohan Yadav welcomed the investment, saying: “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.”

Under the agreement, Madhya Pradesh has designated fifty acres along the Ujjain–Indore Corridor for the planned facility.

Supported by the Rs.6,200 crore funding, the initiative aims to bolster India's semiconductor production ecosystem, accelerate the creation of semiconductor devices for critical applications, create jobs, and enhance Madhya Pradesh’s status as a center for advanced manufacturing.

Paras Semiconductor was established to develop cutting-edge semiconductor technologies for strategic and high-performance sensor uses.

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The firm intends to create devices for sensor technologies and optical and optronic systems, with possible future growth into AI chips as market opportunities change — leveraging Paras Defence's current knowledge in optics and optronics.

Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies Ltd says, “The signing of this MoU marks a significant milestone in Paras Semiconductor’s journey towards building indigenous semiconductor capabilities in India.”

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Santosh Kumar, Chief Executive Officer, Paras Semiconductor, says: “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.”

The initiative is in accordance with Madhya Pradesh’s Semiconductor Policy 2025 and its wider effort to establish a cohesive ecosystem that includes semiconductors, electronics manufacturing, AI, and data centres.

In addition to direct economic advantages, the facility aims to promote related industries, assist MSMEs and supplier networks, and generate chances for skilled professionals in the area.