Paras Semiconductors To Invest ₹6,200 Crore In Chip Packaging Plant In Madhya Pradesh

Paras Defence and Space Technologies said on Wednesday that its semiconductor unit will invest ₹6,200 crore to set up a chip packaging and testing facility in Madhya Pradesh. Paras Semiconductors, a subsidiary of the company, signed a memorandum of understanding with the state's department of science and technology to jointly set up an outsourced semiconductor assembly and test facility in the Indore-Ujjain region. The company said the facility will carry out advanced chip packaging operations and test the packaged chips for reliability. The announcement comes days after the Union Cabinet approved the second phase of the India Semiconductor Mission on July 15 with an outlay of ₹1.275 lakh crore. The second phase shifts focus from attracting semiconductor fabrication units to strengthening the domestic supply chain and will offer incentives to companies supplying raw materials such as minerals and gases used in chip manufacturing. Union IT Minister Ashwini Vaishnaw said the programme will focus on the design, development and production of indigenous chips. "We will be self-reliant in the production of indigenous chips by the end of this programme," he said.