Paras Semiconductors, in partnership with the Madhya Pradesh government, has announced plans to build a ₹6,200 crore semiconductor assembly and testing facility. This marks a major step forward for India's domestic chip manufacturing ecosystem.
₹6,200 crore
Total Planned Investment
⏳ Time Machine
How today’s news fits into the bigger picture
2013
Early Semiconductor Fab Proposals Fail
Consortiums trying to set up multi-billion-dollar fabrication plants in India collapsed due to lack of local suppliers and infrastructure.
2021
National Semiconductor Mission Unveiled
The central government cleared a ₹76,000 crore incentive package, targeting assembly, testing, and fabrication units.
2024
First OSAT Construction Starts
Major Indian industrial conglomerates broke ground on early semiconductor testing units in Gujarat, validating the state-backed subsidy model.
Today
Paras Semiconductors and Madhya Pradesh announced a ₹6,200 crore chip packaging and testing facility.
What happens next?
The factory cleanrooms are expected to begin operations within the next three years.
The state of Madhya Pradesh is set to become India's newest microchip hub. Paras Semiconductors has partnered with the state government to build a ₹6,200 crore Outsource Semiconductor Assembly and Test (OSAT) facility. This crucial packaging plant will process raw silicon wafers into finished, market-ready microchips. Backed by state incentives, the plant aims to integrate India further into the global high-tech supply chain, reducing reliance on East Asian packaging hubs while creating thousands of local engineering and design jobs.
💭 If you're wondering…
A fabrication plant ('fab') actually prints the microscopic circuits onto raw silicon wafers, while an OSAT plant cuts those wafers, packages them in protective casings, and tests them for actual use.
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