Paras Defence to Invest INR 6,200 Crore in Semiconductor Packaging and Testing Project in Madhya Pradesh

Paras Semiconductors Private Limited, a wholly owned subsidiary of Paras Defence and Space Technologies, will be investing approximately INR 6,200 crore. The company said in a filing on 22 July that this investment will be used to establish a greenfield advanced semiconductor packaging facility in Madhya Pradesh.

The district of Indore-Ujjain is being considered as the site for the Outsourced Semiconductor Assembly and Test (OSAT) plant. In addition, state-of-the-art IC packaging methods will be the primary emphasis of the unit.

According to Santosh Kumar, CEO of Paras Semiconductor, the strength of the ecosystems that India builds around its semiconductors will be more important than production capacity in determining the country's future in the semiconductor industry. To build a semiconductor ecosystem that can compete on a global scale, the Ujjain-Indore Corridor offers a once in a lifetime chance to merge world-class infrastructure with a progressive policy climate.

Operations of the Paras’ New Unit

The partnership will see Paras Semiconductors and MPSeDC pooling their resources and knowledge to get the project off the ground. The business claims that the plant will carry out advanced packaging operations, such as 2.5D and 3D advanced packaging, as well as 3D heterogeneous integration. It will also integrate chiplets, bump wafers, assemble flip-chips, test for reliability, and carry out hybrid bonding and ultra-high-density fan-out packaging.

The project is aimed at boosting India's semiconductor packaging skills as the country increases its domestic electronics manufacturing and chip ecosystem. This investment is the latest in a slew of commitments for digital infrastructure and semiconductors made for Madhya Pradesh in the past several months. The state's semiconductor ecosystem is set to receive a $2 billion (approximately INR 19,000 crore) investment from the Spanish tech firm Submer Group earlier this week, with the anticipated creation of nearly 5,000 direct jobs.

MP Focusing on AI Push

During the third edition of the MP Tech Growth Conclave, which focused on data centres and semiconductors, the announcement of Submer's investment was made. During the conclave, Submer stated that Madhya Pradesh would greatly benefit from the increasing investment in artificial intelligence infrastructure. State officials also signed memorandums of understanding with Google Play India and the Madhya Pradesh State Electronics Development Corporation (MPSeDC) during the ceremony.

India is a potential production and export base for Submer's innovative liquid cooling systems for data centres, and the company has already stated its intention to set up shop there. To prepare a workforce for next-generation data centres, the company plans to collaborate with original equipment manufacturers and original data manufacturer training programmes. India is looking to increase its local electronics manufacturing, and the planned OSAT facility by Paras Defence will help India to achieve this goal. It will also improve the country's semiconductor packaging capabilities. Additionally, the nation is working to strengthen its semiconductor supply chain.