Paras Defence Expands Into Semiconductor Packaging and Assembly

Paras Defence and Space Technologies Ltd. has announced a strategic expansion into semiconductors with the launch of new subsidiary, Paras Semiconductor Pvt. Ltd., marking an important milestone in the company’s growth journey across advanced and critical technologies. Paras Defence would also be setting up exclusive advanced heterogeneous & 3D packaging OSAT facility focused on Semiconductor Devices for Optical and Optronic Systems for Defence and Security High-Performance Computing (HPC), networking and data center applications. Paras aims to make it a domestic hub for chiplet integration and advanced system-in-package (SiP) technologies.

The new subsidiary will focus on advanced semiconductor packaging and assembly, a segment that has emerged as a critical link between chip fabrication and end-use systems. The segment is a crucial part of the manufacturing process as it breaks away from traditional large, monolithic chips to enable highly customised, powerful and energy-efficient systems. While India has made strong progress in semiconductor design and policy support for fabrication, advanced packaging capabilities remain limited domestically, particularly for high-reliability applications such as Defence. Paras Semiconductor aims to address this gap by building domestic capability in packaging, testing and qualification for strategic electronics. The initiative is envisioned as a long-term platform to build advanced packaging capability at scale, aligned with national priorities for defence, strategic electronics and secure computing.

Commenting on the announcement, Munjal Sharad Shah, Managing Director, Paras Defence and Space Technologies Ltd., said, “The semiconductor sector has become strategically important in today’s global environment, especially for defence and national security. Advanced packaging plays a critical role in ensuring performance, reliability and supply chain control for sensitive applications. With Paras Semiconductor, we intend to build capability in an area that complements our existing strength in defence electronics and aligns with India’s broader push to develop a resilient and self-reliant semiconductor ecosystem.”

It is also expected to contribute to skill development and creation in the sector, enabling eco system across semiconductor manufacturing, testing and allied engineering domains.

Globally, the semiconductor industry is undergoing a structural shift. This includes packaging multiple chips together into a single system to deliver higher performance, lower power consumption and improved reliability for complex defence and computing applications. Performance improvements are driven not only by chip design but also by how multiple chips are packaged and integrated together. Hence, As the semiconductor industry transitions from transistor scaling to system-level integration through chiplets, hybrid bonding, 2.5D/3D heterogeneous integration (3DHI), wafer- and panel-level fan-out, fine-pitch copper pillar/micro-bump, Co-Packaged Optics (CPO) integration and high-end test/qualification INDIA must establish domestic capabilities in advanced packaging to complement its globally renowned semiconductor design strength. 

Advanced packaging has become central to applications such as high-performance computing, secure communications, radar systems and electronic warfare. The global advanced packaging market is witnessing strong growth driven by rising demand for computing power, data processing and secure electronics, even as supply remains concentrated in a few geographies. For defence platforms, such capabilities are critical to ensure assured availability, long product lifecycles and control over sensitive technologies. This imbalance between demand and supply has gained sharper focus in the current geopolitical environment. Trade restrictions, export controls and supply chain disruptions have highlighted the risks of over-dependence on overseas semiconductor infrastructure, particularly for defence and strategic sectors. Governments worldwide, including India, are encouraging local manufacturing and trusted supply chains through policy support, incentives and long-term ecosystem development. Advanced semiconductor packaging is now viewed as a strategic capability, not just a manufacturing function.