Paras Defence Announces $644 Million Investment in Chip Packaging Plant.

Indian defence engineering company Paras Defence and Space Technologies said recently that its semiconductor subsidiary will invest ₹6,200 crore ($643.79 million) to establish a semiconductor packaging and testing facility in Madhya Pradesh.

Paras Semiconductors signed a memorandum of understanding (MoU) with the Madhya Pradesh government's Department of Science and Technology to jointly develop an outsourced semiconductor assembly and test (OSAT) facility in the Indore-Ujjain region.

OSAT facilities perform the packaging, assembly and testing of silicon wafers manufactured by semiconductor foundries, converting them into finished chips ready for use in electronic devices.

The proposed investment marks Paras Defence's entry into India's expanding semiconductor manufacturing ecosystem, as the country seeks to strengthen its domestic chip supply chain through investments in semiconductor packaging and testing.