Paras Defence Bets ₹5 Billion On Semiconductors

Eyeing to push India further on the global advanced packaging map, Paras Defence’s ₹5 billion semiconductor bet targets defence, exports and next-generation chiplet technologies.

Paras Defence and Space Technologies has announced a ₹5 billion investment to set up a new semiconductor production facility in India. The company has also incorporated a wholly owned subsidiary, Paras Semiconductor, to lead this initiative.

Commercial production is expected to begin by the end of 2027, with the facility targeting both domestic demand and export markets.

The new arm will focus on advanced semiconductor packaging and assembly, an area seen as increasingly critical for next-generation defence and high-performance electronics.

Paras Defence said the upcoming unit will concentrate on heterogeneous and three-dimensional packaging technologies. These include chiplet integration and advanced system-in-package (SiP) solutions, with a strong emphasis on thermal imaging systems and other mission-critical platforms.

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The company claims the project will result in India’s first advanced heterogeneous and 3D packaging outsourced semiconductor assembly and test (OSAT) facility.

The proposed facility will serve defence, security and strategic electronics programmes, while also catering to applications in high-performance computing, networking and data centres. By focusing on advanced packaging rather than front-end chip fabrication, it aims to address a key gap in India’s semiconductor value chain.

As chipmakers shift to modular designs, advanced packaging boosts performance and efficiency. Paras Defence sees strategic value, supporting India’s semiconductor self-reliance as policy focus expands beyond fabrication.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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