Paras Defence Launches Semiconductor Subsidiary named Paras Semiconductors Private Limited to Advance Chip Packaging for Defence and AI.
Paras Defence and Space Technologies Ltd. has taken a significant step into India’s burgeoning semiconductor sector by establishing a new wholly owned subsidiary dedicated to cutting-edge chip packaging technologies.
The move positions the company to bridge key gaps in domestic manufacturing for defence electronics and high-performance computing applications.
Paras Semiconductors Private Limited will concentrate on state-of-the-art advanced heterogeneous packaging and 3D packaging OSAT (Outsourced Semiconductor Assembly and Testing) services.
This specialized focus addresses the post-fabrication stages where silicon dies are assembled, tested, and integrated into reliable systems—essential for modern devices that demand compact, efficient, and high-reliability performance.
The subsidiary starts with a lean structure: INR 10 lakh in authorized and paid-up capital, with Paras Defence subscribing to 70% (INR7 lakh) through an arms-length transaction. It will prioritize semiconductor devices tailored for optical and opto-electronic systems in defence and security, alongside booming areas like AI, high-performance computing (HPC), networking, and data centers.
Large Monolithic Dies to Modular Chiplet-Based Architectures
With over four decades in defence electronics, optics, optronics, and indigenously designed systems, Paras Defence sees packaging as a natural extension.
As chip design evolves from large monolithic dies to modular chiplet-based architectures, advanced techniques like hybrid bonding, 2.5D/3D stacking, and co-packaged optics become vital for power efficiency and performance in mission-critical uses such as radar, electronic warfare, and secure data processing.
India’s push for semiconductor sovereignty through design incentives and fab support has left OSAT capabilities underdeveloped domestically, particularly for defence-grade reliability.
Paras Semiconductors Private Limited aims to fill this void, creating a hub for chiplet integration and system-in-package (SiP) innovations that reduce import dependence.
Leadership Comments
Munjal Sharad Shah, Managing Director of Paras Defence, emphasized the strategic importance: “The semiconductor sector has become strategically vital for defence and national security. Advanced packaging ensures performance, reliability, and supply chain control for sensitive applications. Through Paras Semiconductor, we plan to develop capabilities that complement our defence electronics strengths and support India’s resilient semiconductor ecosystem.”
Broader Implications for Growth
This expansion diversifies Paras Defence beyond aerospace and defence into a high-margin segment projected for rapid global expansion.
Analysts view it as a platform for scaling OSAT operations, potentially attracting partnerships and funding as India builds its electronics manufacturing base.
The announcement comes amid rising investor interest, with Paras Defence shares reflecting optimism about its pivot to next-gen technologies.
