Paras Defence Signs ₹6,200 Crore MoU with MP Govt for Semiconductor Facility
Paras Defence signed an MoU with the Madhya Pradesh government to set up a ₹6,200 crore semiconductor packaging facility on 50 acres in Ujjain–Indore Corridor. The investment aims to boost India's semiconductor ecosystem and develop devices for strategic applications. This aligns with India's semiconductor ambitions and MP's Semiconductor Policy 2025.
The substantial investment of ₹6,200 crore and the establishment of a new advanced semiconductor facility represent a major strategic development for the company and the semiconductor industry in India.
The announcement details a significant investment and strategic partnership to establish a semiconductor facility, which is positive for the company and the region.
Paras Semiconductors, a business of Paras Defence & Space Technologies Ltd., has signed a Memorandum of Understanding (MoU) with the Government of Madhya Pradesh to establish an advanced semiconductor packaging OSAT facility. The government has allotted fifty acres of land on the Ujjain–Indore Corridor for this project, which involves a proposed investment of ₹6,200 crore. This initiative aims to bolster India's semiconductor manufacturing ecosystem, develop semiconductor devices for strategic applications, and generate employment.
The facility will leverage advanced semiconductor manufacturing and packaging technologies for sensor technologies, optical and optronic systems, and other strategic applications. It also holds potential for future expansion into AI chips. This move aligns with Paras Defence's existing expertise in optics and optronics and India's broader semiconductor ambitions.
Munjal Sharad Shah, Managing Director of Paras Defence & Space Technologies Ltd., expressed honor for the government's support and highlighted the progressive vision of Madhya Pradesh. He emphasized the contribution to the state's industrial growth, job creation, and fostering a supplier ecosystem to support India's goal of becoming a globally competitive semiconductor manufacturing destination.
Santosh Kumar, CEO of Paras Semiconductor, noted the strategic significance of the Ujjain–Indore Corridor for building a globally competitive semiconductor ecosystem. He stated that the project aims to develop semiconductor devices for strategic applications, strengthen domestic technology capabilities, and contribute to India's long-term technological self-reliance.
The project supports the Government of Madhya Pradesh's Semiconductor Policy 2025 and its vision for an integrated ecosystem for semiconductors, electronics manufacturing, AI, and data centers. The Ujjain–Indore Corridor is being developed as a key technology and manufacturing hub.
The Hon'ble Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, welcomed the investment, stating that Madhya Pradesh is becoming a preferred destination for high-technology manufacturing. He assured responsive governance, world-class infrastructure, and timely facilitation for such transformative investments, aligning with the vision of Aatmanirbhar Bharat.
This facility is expected to foster ancillary industries, encourage MSME and supplier network growth, create skilled employment, and strengthen high-value manufacturing in Madhya Pradesh. It will accelerate technology development and innovation-led manufacturing, reinforcing the state's position as an emerging semiconductor destination.
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Paras Defence and Space Technologies Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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