Prime Highlights
- Paras Semiconductors will invest around ₹6,200 crore to set up an advanced semiconductor OSAT facility in Madhya Pradesh.
- The plant will support advanced IC packaging and testing technologies, strengthening India’s semiconductor manufacturing ecosystem.
Key Facts
- Paras Semiconductors Pvt. Ltd. is a subsidiary of Paras Defence and Space Technologies Ltd.
- The MoU was signed with the Madhya Pradesh Department of Science and Technology on behalf of MPSeDC.
Background
Paras Semiconductors Pvt. Ltd., a subsidiary of Paras Defence and Space Technologies Ltd., has signed a memorandum of understanding (MoU) with the Madhya Pradesh government to set up a greenfield advanced IC packaging Outsourced Semiconductor Assembly and Test (OSAT) facility in the state. The Department of Science and Technology signed the agreement on behalf of the Madhya Pradesh State Electronics Development Corporation (MPSeDC).
The project will bring advanced semiconductor packaging and testing capabilities to the state. The proposed facility will handle technologies such as 3D heterogeneous integration, 2.5D and 3D packaging, hybrid bonding, fan-out packaging, chiplet integration, wafer bumping, flip-chip assembly, testing and reliability.
Paras Defence plans to invest around ₹6,200 crore in the project. The company and MPSeDC will work together by combining their expertise and resources to support the establishment of the facility.
Earlier in July, the company’s management said it operates across the entire imagery systems value chain and is also working on interceptor drone opportunities. It added that the company continues to develop systems that meet changing defence requirements.
The management also said Paras Defence is exploring partnerships with global companies to strengthen its position in defence technologies. However, it clarified that it is not planning any acquisitions at present.
The company recently signed an intellectual property licence agreement with Tandem Defence LLC of Georgia for Guardian-1 interceptor technology. The agreement gives Paras Defence exclusive rights to manufacture and commercialise the technology in India for a 12-month period.
Paras Defence has a market capitalisation of about ₹10,000 crore. Its shares were trading lower in the latest session, although the stock has still delivered strong gains since the beginning of the year.