As part of the agreement, Paras Semiconductors have been allotted fifty acres of land on the strategically located Ujjain–Indore Corridor by the Madhya Pradesh government for the proposed facility, the company said in a statement.
The project is expected to strengthen India’s semiconductor manufacturing ecosystem, accelerate the development of semiconductor devices for strategic applications, generate significant employment opportunities, catalyse the growth of a robust semiconductor ecosystem and reinforce Madhya Pradesh’s emergence as a preferred destination for advanced manufacturing and next-generation technologies, it added.
Paras Semiconductors, the semiconductor business of Paras Defence & Space Technologies Ltd., has been established to build advanced semiconductor capabilities for strategic and high-performance sensor applications.
Leveraging advanced semiconductor manufacturing and packaging technologies, the company aims to develop semiconductor devices for sensor technologies, optical and optronic systems, and other strategic applications in the near term.
The facility also offers the potential to support future expansion into AI chips and other advanced semiconductor technologies, as market opportunities evolve. The initiative builds on Paras Defence’s longstanding expertise in optics and optronics and reflects the Group’s strategic expansion into critical technologies aligned with India’s semiconductor ambitions.
The project aligns with the Government of Madhya Pradesh’s Semiconductor Policy 2025 and the state’s broader vision of developing an integrated ecosystem for semiconductors, electronics manufacturing, artificial intelligence, data centres and other advanced technologies.
The Ujjain– Indore Corridor is emerging as one of the state’s key technology and manufacturing corridors, supported by progressive policy initiatives, world-class infrastructure, industry-academia collaboration, research and skill development programmes aimed at attracting investments across the semiconductor value chain. T
The project is expected to complement these efforts by creating advanced manufacturing capabilities while strengthening the region’s position as a strategic hub for nextgeneration technologies.
The proposed facility is expected to contribute significantly to Madhya Pradesh’s industrial landscape by fostering ancillary industries, encouraging the growth of MSMEs and supplier networks, creating opportunities for highly skilled talent and strengthening the state’s capabilities in high-value manufacturing.
Beyond direct economic benefits, the project is expected to accelerate technology development, encourage innovation-led manufacturing and reinforce Madhya Pradesh’s position as an emerging semiconductor destination while supporting India’s long-term semiconductor and electronics ambitions.
“Madhya Pradesh is steadily emerging as a preferred destination for high-technology manufacturing, backed by progressive policies, robust infrastructure and an industry-friendly ecosystem. The Ujjain-Indore Corridor is being developed as a strategic hub for advanced manufacturing, and we remain committed to providing responsive governance, world-class infrastructure,” Madhya Pradesh Chief Minister Mohan Yadav said.
“The signing of this MoU marks a significant milestone in Paras Semiconductor’s journey towards building indigenous semiconductor capabilities in India. The allocation of land on the Ujjain– Indore Corridor reflects the state’s intent to foster long-term partnerships with industry.,” Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies, said.
“The next phase of India’s semiconductor journey will be defined not just by manufacturing capacity, but by the strength of the ecosystems we build around it. The Ujjain–Indore Corridor presents a unique opportunity to combine world-class infrastructure with a progressive policy environment to create a globally competitive semiconductor ecosystem,” Santosh Kumar, Chief Executive Officer, Paras Semiconductor, said.
Through this project, we aim to develop semiconductor devices for strategic applications, strengthen domestic technology capabilities and contribute to India’s long-term technological selfreliance, he added.