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Paras Semiconductors, a subsidiary of Paras Defence and Space Technologies Ltd, signed an MoU with the Madhya Pradesh government on 22 July 2026 to build a semiconductor OSAT facility.
The greenfield facility in the Indore-Ujjain region involves an investment of about Rs 6,200 crore (~US$644 million).
It covers advanced packaging processes including hybrid bonding, chiplet integration, wafer bumping and flip-chip assembly.
The project is expected to create over 2,500 direct jobs and has been allotted 50 acres on the Indore-Ujjain corridor.
OSAT firms handle the back-end steps of chip-making — packaging bare silicon dies into protective casings, connecting them electrically, and testing them for defects — after front-end wafer fabrication plants have etched the circuits. India currently has almost no domestic front-end fabs, so OSAT and packaging facilities are the more immediate, capital-lighter entry point into semiconductor manufacturing.
Simple Analogy: If wafer fabrication is like baking a cake from scratch, OSAT is like the bakery's finishing and packaging line — slicing, boxing and quality-checking the product before it reaches the customer.
The Paras OSAT facility aligns with the Centre's India Semiconductor Mission, which incentivises semiconductor and display manufacturing investment in India
GS Paper III > Science and Technology, Industrial Policy
General Awareness > Economy and Industry
A packaging technique that combines multiple smaller semiconductor dies into a single chip package
A Government of India programme supporting semiconductor and display manufacturing through capital incentives