Paras Defence and Space Technologies, an Indian defence company, has announced a Rs 500 crore investment to establish a new semiconductor production facility aimed at catering to both domestic and export markets.

The plant will focus on chiplet integration and advanced system-in-package technologies, specifically for thermal imaging systems. Production is expected to begin by the end of 2027. This initiative is a significant step towards indigenisation. The company anticipates an annual domestic demand of Rs 2,500 crore for sensors and chipsets as India's defence sector scales up. Paras Defence plans to manufacture over 10,000 detectors each year, with a unit price of approx. Rs 25 lakh.

Managing Director Munjal Sharad Shah emphasised that this will be the first time such semiconductor devices are developed and produced in India. The company is also in talks with state governments for the plant’s final location.