Paras Defence Signs MP MoU For Proposed Semiconductor Facility; Shares Rise Nearly 1%

Mumbai July, 22: Paras Defence and Space Technologies Ltd. announced that its subsidiary, Paras Semiconductors Private Limited, has signed a memorandum of understanding (MoU) with the Madhya Pradesh State Electronics Development Corporation (MPSEDC) to explore setting up a greenfield semiconductor packaging facility in the state.

According to the company’s exchange filing, the proposed project involves an investment of around ₹6,200 crore and will be located in Indore, Madhya Pradesh. The facility is intended to operate as an Outsourced Semiconductor Assembly and Test (OSAT) unit, a critical link in the semiconductor manufacturing value chain where chips are packaged, assembled and tested before deployment.

The MoU brings together Paras Semiconductors and MPSEDC to combine technical expertise and institutional support for developing the proposed facility. The agreement is aimed at facilitating the establishment of the project and advancing Madhya Pradesh’s ambitions of becoming a semiconductor manufacturing hub.

The company said the proposed plant will house advanced packaging capabilities, including 3D heterogeneous integration, 2.5D/3D advanced packaging, hybrid bonding, ultra-high-density fan-out packaging, chiplet integration, wafer bumping, flip-chip assembly, testing and reliability services.

Stock Market Snapshot

Investors reacted positively to the announcement, reflecting optimism around the company’s entry into a strategically important segment of the semiconductor ecosystem.

Paras Defence share price was trading at ₹1,234.00, up 0.93%, as of 11:43 AM IST on July 22.

While the MoU does not represent a final investment approval, it signals the company’s long-term intent to diversify beyond its core defence business into semiconductor manufacturing infrastructure, an area receiving strong policy support from both the Centre and state governments.

Why The Project Matters

India has been pushing to build a domestic semiconductor ecosystem to reduce import dependence and strengthen its electronics manufacturing capabilities. While semiconductor fabrication plants attract much of the attention, OSAT facilities are equally important because they perform the final packaging and testing before chips reach end users.

If implemented, the proposed facility would position Paras Semiconductors in a high-value segment of the semiconductor supply chain. Advanced packaging technologies such as chiplet integration and 3D packaging are becoming increasingly important as chipmakers look for alternatives to traditional transistor scaling.

The MoU also underscores Madhya Pradesh’s efforts to attract large-scale semiconductor investments by partnering with private companies in the sector.

Company Background

Paras Defence and Space Technologies develops products and solutions across defence engineering, defence electronics, electromagnetic pulse (EMP) protection and optics. In recent years, the company has been expanding into adjacent high-technology businesses, including semiconductors, as part of its long-term growth strategy.

Conclusion

The agreement marks an early but significant step in Paras Defence’s semiconductor ambitions. Although the project remains at the MoU stage, the proposed ₹6,200 crore investment highlights the scale of the company’s plans and aligns with India’s broader push to develop domestic semiconductor manufacturing and advanced packaging capabilities.

Source:

https://www.nseindia.com/get-quote/equity/PARAS/Paras-Defence-and-Space-Technologies-Limited

https://nsearchives.nseindia.com/corporate/PARAS_22072026091138_IntimationParasSemiconMoUwithMPState.pdf