Paras Defence and Space Technologies Ltd. has announced its planned expansion into the semiconductor sector with the incorporation of a new subsidiary, Paras Semiconductor Pvt. Ltd., marking a significant milestone in the company’s evolution into advanced and critical technologies. As part of this initiative, Paras Defence plans to establish a limited advanced heterogeneous and 3D semiconductor packaging (OSAT) facility, with a strategic focus on semiconductor devices for optical and optronic systems catering to defense and security applications, as well as high-performance computing (HPC), networking, and data center markets.
The proposed facility aims to position Paras Semiconductor as a domestic hub for chiplet integration and advanced system-in-package (SiP) technologies, strengthening India’s capabilities in next-generation semiconductor packaging for mission-critical and high-reliability applications.
The new subsidiary will emphasize advanced semiconductor packaging and assembly, a segment that has developed as an important connection between chip fabrication and end-use processes. The segment is a crucial part of the production process as it breaks away from large traditional, monolithic chips to allow highly customized, powerful, and energy-efficient systems. While India has made robust progress in semiconductor design and policy backing for fabrication, packaging capabilities remain limited domestically, mainly for high-reliability usages such as Defense. Paras Semiconductor focuses on addressing this gap by building domestic competence in packaging, testing, and qualification for planned electronics. The initiative is intended as a long-term platform to build progressive packaging capability at scale, aligned with national priorities for defense, planned electronics, and safe computing.
Commenting on the announcement, Munjal Sharad Shah, Managing Director, Paras Defence and Space Technologies Ltd., expressed, “The semiconductor industry has become purposefully crucial in the global situation currently, particularly for defense and national security. Advanced packaging plays a crucial role in safeguarding performance, dependability, and supply chain control for sensitive usages. With Paras Semiconductor, we intend to shape capability in an area that complements our existing strength in defense electronics and aligns with India’s broader push to grow a resilient and self-reliant semiconductor ecosystem.”
It is also anticipated to contribute to skill growth and creation in the industry, allowing eco system across semiconductor production, testing, and allied engineering domains.
Advanced packing has become central to utilize such as high-performance computing, safe communications, radar systems, and electronic warfare. The worldwide advanced packaging market is observing robust growth driven by increasing demand for computing power, data processing, and safe electronics, even as supply remains focused on a few geographies.
For defense platforms, such competences are critical to confirm assured availability, long product lifecycles, and regulator over sensitive technologies. This imbalance between demand and supply has grown sharper in the existing geopolitical environment. Trade restrictions, export panels, and supply chain disturbances have highlighted the dangers of over-dependence on overseas semiconductor infrastructure, mainly for the defense and strategic industries. Governments worldwide, comprising India, are inspiring local production and trusted supply chains through policy support, incentives, and long-term ecosystem growth. Progressive semiconductor packaging is now observed as a planned capability, not just an engineering function.
23 January 2026
23 January 2026
23 January 2026
23 January 2026