The ₹500 Crore Chip Gamble: Paras Defence Takes the Lead

Paras Defence and Space Technologies has announced a ₹500 crore investment to set up a semiconductor manufacturing facility aimed at serving both domestic and export markets.

The proposed plant will focus on chiplet integration and advanced system-in-package (SiP) technologies for thermal imaging systems, with production scheduled to commence by the end of 2027. The initiative marks a major step toward indigenisation of critical defence technologies. As India’s defence sector expands, the company estimates annual domestic demand for sensors and chipsets at around ₹2,500 crore.

Paras Defence plans to manufacture more than 10,000 detectors annually, each priced at approximately ₹25 lakh. Managing Director Munjal Sharad Shah highlighted that this will be the first instance of such advanced semiconductor devices being developed and produced within India. The company is currently in discussions with multiple state governments to finalise the location of the facility.

News by Rahul Yelligetti.