Paras Defence to set up semicon unit worth Rs 6,200 crore in Madhya Pradesh
Paras Defence is a private sector defence engineering company that specialises in designing, manufacturing, and testing high-precision products for the defence and space sectors
Paras Defence and Space Technologies Limited is significantly expanding into the semiconductor sector with a Rs 6,200 crore investment to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Madhya Pradesh through its subsidiary, Paras Semiconductors. This initiative, which includes advanced chip packaging and testing capabilities, aligns with India's broader semiconductor ambitions under the India Semiconductor Mission (ISM 2.0). The facility will be located on a 50-acre site along the Indore–Ujjain corridor, focusing on crucial aspects of chip manufacturing. Despite the strategic importance of semiconductors for defence and technological advancement, the announcement led to a minor dip in Paras Defence's stock. The development aims to bolster India's indigenous semiconductor capabilities, a critical component for modern defence systems and technological progress.
Paras Defence and Space Technologies Limited is significantly expanding into the semiconductor sector with a Rs 6,200 crore investment to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Madhya Pradesh through its subsidiary, Paras Semiconductors. This initiative, which includes advanced chip packaging and testing capabilities, aligns with India's broader semiconductor ambitions under the India Semiconductor Mission (ISM 2.0). The facility will be located on a 50-acre site along the Indore–Ujjain corridor, focusing on crucial aspects of chip manufacturing. Despite the strategic importance of semiconductors for defence and technological advancement, the announcement led to a minor dip in Paras Defence's stock. The development aims to bolster India's indigenous semiconductor capabilities, a critical component for modern defence systems and technological progress.
Paras Defence and Space Technologies Limited is significantly expanding into the semiconductor sector with a Rs 6,200 crore investment to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Madhya Pradesh through its subsidiary, Paras Semiconductors. This initiative, which includes advanced chip packaging and testing capabilities, aligns with India's broader semiconductor ambitions under the India Semiconductor Mission (ISM 2.0). The facility will be located on a 50-acre site along the Indore–Ujjain corridor, focusing on crucial aspects of chip manufacturing. Despite the strategic importance of semiconductors for defence and technological advancement, the announcement led to a minor dip in Paras Defence's stock. The development aims to bolster India's indigenous semiconductor capabilities, a critical component for modern defence systems and technological progress.
Paras Defence and Space Technologies Limited announced it would set up the semiconductor unit with an investment of Rs 6,200 crore (about $644 million). Its wholly-owned subsidiary, Paras Semiconductors, has signed an MoU with the Madhya Pradesh State Electronics Development Corporation (MPSeDC) to build an Outsourced Semiconductor Assembly and Test facility (OSAT) for chip packaging and testing.
Paras Defence is a private sector defence engineering company that specialises in designing, manufacturing, and testing high-precision products for the defence and space sectors. The semicon unit will be built on a 50-acre site along the Indore–Ujjain corridor in Madhya Pradesh.
An OSAT plant packages, assembles and tests foundry-made silicon to turn it into the final product of semiconductor chips. According to Reuters, the facility will undertake advanced chip packaging operations including 3D heterogeneous integration and 2.5D/3D advanced packaging, and test the packaged chips for reliability.
The development is in line with the Union Cabinet's approval of a Rs 1.27 lakh crore budget for the India Semiconductor Mission (ISM 2.0). It is a six-year programme that aims to accelerate the country's semiconductor ecosystem.
However, according to Moneycontrol.com, the shares of Paras Defence & Space Technologies traded lower in early trade on Wednesday after the company announced the plan to set up the facility.
Semiconductor chips are vital for defence systems today. Their demand rises in accordance with the increase in technological advancements. These chips are made from silica. While raw silica is available worldwide, high-purity quartz (crucial for semiconductors) is rare. In India, this high-purity quartz is primarily available in Rajasthan and Andhra Pradesh.