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Paras Semiconductors Secures Customer LoIs, Key US Partnerships For MP Chip OSAT
businessworld.in Aug 6, 2026

Paras Semiconductors Secures Customer LoIs, Key US Partnerships For MP Chip OSAT

Curated by · TechCapsules ·

AI-summarised brief · reviewed before publication

Paras Semiconductors, the chipmaking subsidiary of Paras Defence and Space Technologies, has secured letters of intent from anchor customers for its upcoming advanced semiconductor packaging facility in Madhya Pradesh. CEO Santosh Kumar confirmed these commitments, which will support the company’s application for incentives under the government’s ISM 2.0 programme. The Rs 6,200 crore OSAT plant, located on a 50-acre parcel in the Ujjain-Indore corridor, will operate as a “System OSAT,” engaging clients during product design. Partnerships with unnamed US design and manufacturing firms have been established to support system-level packaging. Initial production will target AI data centre infrastructure and edge device ASICs, alongside defence and space sectors. Construction is expected to take two to 2.5 years, with commercial operations beginning within three years. Phase one capacity includes processing over 10,000 wafers monthly, scaling to 20,000, with assembly capabilities of 5 to 10 million units. The facility will focus on advanced flip-chip assembly, with plans to add 2.5D and 3D fan-out packaging in a subsequent phase.

💡 Why It Matters

  • · The integration of US design partnerships with Indian manufacturing capabilities creates a localized supply chain for critical AI and defence hardware.
  • · This strategic alignment reduces reliance on foreign packaging hubs while accelerating domestic technological self-sufficiency.
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