Madhya Pradesh is set to become a major hub in India’s semiconductor ambitions, with Paras Semiconductors signing an MoU with the state government to establish an advanced semiconductor packaging OSAT (Outsourced Semiconductor Assembly and Test) facility.
The proposed facility, backed by an investment of Rs. 6,200 crore, will come up on 50 acres of land allotted by the Government of Madhya Pradesh along the strategically important Ujjain-Indore Corridor.
The project is expected to accelerate India’s semiconductor manufacturing capabilities, support strategic technology applications, generate significant employment opportunities and drive the development of a robust semiconductor ecosystem in the state.
Paras Semiconductor, the semiconductor arm of Paras Defence & Space Technologies Ltd., is focused on building advanced semiconductor capabilities for strategic and high-performance sensor applications.
The initiative builds on Paras Defence’s established expertise in optics and optronics while marking a strategic expansion into next-generation technologies aligned with India’s semiconductor roadmap.
Commenting on the development, Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies Ltd., said: "The signing of this MoU marks a significant milestone in Paras Semiconductor's journey towards building indigenous semiconductor capabilities in India.
"We are honoured by the confidence and support extended by the Government of Madhya Pradesh and sincerely appreciate the state's progressive vision, industry-friendly policies and commitment to creating an enabling ecosystem for advanced manufacturing. The allocation of land on the Ujjain-Indore Corridor reflects the state's intent to foster long-term partnerships with industry.
"Through this investment, we look forward to contributing to Madhya Pradesh's industrial growth, creating highvalue employment, nurturing a vibrant supplier ecosystem and supporting India's vision of becoming a globally competitive semiconductor manufacturing destination."
Highlighting the strategic importance of the project, Santosh Kumar, Chief Executive Officer, Paras Semiconductor, said: "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. Ujjain, the sacred city of Mahakal and one of India's oldest centres of knowledge and civilisation, symbolises a remarkable convergence of heritage and the future.
"It is an honour for Paras Semiconductors to contribute to this transformation and be part of Madhya Pradesh's vision of building advanced semiconductor capabilities. Through this project, we aim to develop semiconductor devices for strategic applications, strengthen domestic technology capabilities and contribute to India's long-term technological selfreliance."
The project aligns with the Government of Madhya Pradesh’s Semiconductor Policy 2025 and its broader strategy to build an integrated ecosystem covering semiconductors, electronics manufacturing, artificial intelligence, data centres and other advanced technologies.
The Ujjain-Indore Corridor is emerging as a key technology and manufacturing destination, supported by infrastructure development, policy initiatives, industry-academia collaboration, research programmes and skill development efforts aimed at attracting investments across the semiconductor value chain.
Welcoming the investment, the Chief Minister of Madhya Pradesh, Mohan Yadav, said: "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.
"The Ujjain-Indore Corridor is being developed as a strategic hub for advanced manufacturing, and we remain committed to providing responsive governance, world-class infrastructure and timely facilitation to enable such transformative investments. Together, we can strengthen India's capabilities in advanced technologies and contribute to the vision of Aatmanirbhar Bharat."
The semiconductor facility is expected to trigger wider economic growth in Madhya Pradesh by encouraging ancillary industries, expanding MSME participation, developing supplier networks and creating opportunities for skilled professionals.
The project also represents a significant step in India’s push for semiconductor self-reliance, with investments in manufacturing, advanced packaging, design, testing, research, electronics manufacturing services (EMS), talent development and trusted supply chains becoming increasingly critical to the country’s technology ambitions.
Paras Semiconductor’s proposed facility is expected to strengthen India’s semiconductor value chain while delivering long-term economic benefits to Madhya Pradesh through employment generation, technology partnerships, innovation-driven manufacturing and ecosystem development.
