Paras Defence and Space Technologies Ltd on Monday announced the formation of a new subsidiary to enter the semiconductor packaging segment, marking its expansion into a part of the chip supply chain seen as critical for defence and strategic electronics.
The company said the subsidiary, Paras Semiconductor Pvt Ltd, will focus on advanced semiconductor packaging and assembly, an area that connects chip fabrication with final electronic systems.
Paras Defence plans to set up a facility for heterogeneous and three-dimensional packaging, also known as outsourced semiconductor assembly and test or OSAT, aimed primarily at defence-related applications.
Semiconductor packaging refers to the process of assembling and integrating chips so they can be used in electronic systems. In recent years, the industry has moved away from single, large chips towards combining multiple smaller chips into a single package, a method used to improve performance, reduce power consumption and increase reliability.
This approach is increasingly used in defence electronics, secure communications and high-performance computing systems.
India has made progress in semiconductor design and has announced policy measures to encourage chip manufacturing. However, domestic capacity in advanced packaging remains limited, particularly for applications that require high reliability and long operational lifecycles, such as defence and strategic electronics.
Paras Defence said the new venture is intended to help address this gap by developing local capabilities in chip packaging, testing and qualification. The proposed facility will support semiconductor devices used in optical and optronic systems for defence and security, as well as certain computing and networking applications.
“The semiconductor sector has become strategically important, especially for defence and national security,” said Munjal Sharad Shah, Managing Director, Paras Defence and Space Technologies. He said advanced packaging plays an important role in ensuring performance, reliability and supply chain control for sensitive applications.
Globally, advanced semiconductor packaging has gained prominence as chipmakers seek performance gains beyond traditional transistor scaling. Technologies such as chiplet integration, two-and-a-half dimensional and three-dimensional packaging are increasingly being adopted for applications that require high processing power and secure data handling.
The global supply of advanced packaging services is currently concentrated in a few countries. Trade restrictions, export controls and recent supply chain disruptions have highlighted risks associated with dependence on overseas semiconductor infrastructure, particularly for defence and strategic sectors.
Against this backdrop, governments including India have been encouraging local manufacturing and trusted supply chains through policy support and incentives. Industry analysts view advanced packaging as a strategic capability rather than a routine manufacturing function.
Paras Defence said the new subsidiary is also expected to contribute to skill development and ecosystem creation across semiconductor manufacturing, testing and related engineering fields.
The company operates in defence engineering and optics and optronic systems, supplying equipment and solutions for land, naval, air and space platforms.
