Indian defence engineering firm Paras Defence and Space Technologies has announced a $644 million (₹6,200 crore) investment to build a semiconductor packaging and testing facility in Madhya Pradesh.
The project marks a significant expansion for the company’s semiconductor unit, moving beyond its traditional defence manufacturing base into advanced electronics assembly.
The facility will focus on packaging and testing, a critical stage in the semiconductor value chain that adds substantial value to raw wafers.
By localising this capability, Paras Defence aims to reduce reliance on overseas assembly and support India’s broader push for self-sufficiency in critical technologies.
The investment underscores the growing strategic importance of the semiconductor sector for Indian industrial policy.
This development arrives amid a broader surge in semiconductor capital expenditure globally.