Paras Defence & Space Technologies, through its subsidiary Paras Semiconductors, announced a ₹6,200 crore investment to establish a semiconductor packaging facility in Madhya Pradesh.
₹6,200 crore
Investment Amount
⏳ Time Machine
How today’s news fits into the bigger picture
1980s
Early Indian chip fabrication efforts
India made early attempts at semiconductor fabrication with SCL (Semiconductor Complex Limited) in Chandigarh, but progress was hampered by technological limitations and a major fire in 1989.
2020-2022
Global chip shortage crisis
The COVID-19 pandemic led to unprecedented global semiconductor shortages, severely impacting industries worldwide, including automotive and electronics. This highlighted India's vulnerability due to its reliance on imports.
December 2021
India Semiconductor Mission launched
The Indian government approved a **₹76,000 crore** Production Linked Incentive (PLI) scheme to attract and support semiconductor manufacturing and design companies, aiming to create a robust ecosystem.
July 2023
Micron announces Gujarat plant
US-based Micron Technology announced a **$2.75 billion** (₹22,500 crore) investment to set up a semiconductor assembly and test facility in Gujarat, signaling growing foreign confidence in India's chip ambitions.
Today
Paras Defence's subsidiary announced a ₹6,200 crore investment for a semiconductor packaging facility in Madhya Pradesh, boosting India's chip ecosystem.
What happens next?
The facility's construction and commissioning will be closely watched, with completion expected to take several years, followed by ramp-up of production and skill development.
Paras Defence & Space Technologies' subsidiary, Paras Semiconductors, has signed a Memorandum of Understanding (MoU) with the Government of Madhya Pradesh to invest **₹6,200 crore** in setting up a state-of-the-art semiconductor packaging facility. This significant investment, announced today, aims to bolster India's domestic semiconductor ecosystem and is part of the country's broader 'Make in India' and 'Atmanirbhar Bharat' initiatives. The project will be guided by SK Jha, former Chairman and Managing Director of Mishra Dhatu Nigam (Midhani), a key player in special metals.
💭 If you're wondering…
Semiconductor packaging is the process of enclosing a tiny semiconductor chip (integrated circuit) in a protective case. This package protects the chip from damage and allows it to be connected to other electronic components.
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