Paras Defence to Invest ₹6,200 Crore in Advanced Semiconductor Packaging Facility

Paras Defence and Space Technologies Ltd., through its subsidiary Paras Semiconductors Pvt. Ltd., has signed a Memorandum of Understanding (MoU) with the Department of Science and Technology, representing the Madhya Pradesh State Electronics Development Corporation (MPSeDC), to establish a greenfield Outsourced Semiconductor Assembly and Test (OSAT) facility in Madhya Pradesh. The company plans to invest nearly ₹6,200 crore in the project, which will focus on advanced semiconductor packaging technologies such as 3D heterogeneous integration, 2.5D/3D packaging, hybrid bonding, ultra-high-density fan-out packaging, chiplet integration, wafer bumping, flip-chip assembly, testing and reliability solutions. With a market capitalization of around ₹10,000 crore, this investment reflects Paras Defence’s long-term strategy to expand into high-value semiconductor manufacturing while strengthening India's electronics and defence ecosystem. The company has also stated that it is exploring partnerships with global technology firms to enhance its defence capabilities, although it is not considering inorganic growth at present. Earlier this month, the company also secured an exclusive intellectual property (IP) license agreement with Tandem Defence LLC for the Guardian-1 counter-drone technology, following the Defence Acquisition Council’s approval of Acceptance of Necessity (AoNs) worth ₹52,000 crore for the Army, Navy and Air Force. Overall, the latest investment underlines Paras Defence’s focus on building advanced manufacturing capabilities and expanding its presence across defence and semiconductor technologies. $PARAS Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.