Paras Defence Semiconductor Expansion as PDST Launches New Chip Packaging Subsidiary

Paras Defence & Space Technologies expands into chip packaging with Paras Semiconductor Pvt Ltd, strengthening India’s defence-focused semiconductor ecosystem

Paras Defence & Space Technologies Ltd (PDST) has announced the launch of Paras Semiconductor Pvt Ltd as a wholly owned subsidiary on January 18, marking a significant expansion into India’s growing semiconductor ecosystem. The move strengthens the company’s long-term strategy to build critical electronics capabilities aligned with national defence and technology priorities. With this step, Paras Defence semiconductor ambitions take a concrete shape within India’s strategic manufacturing landscape.

Paras Semiconductor to Drive Chiplet and SiP Innovation

The newly formed subsidiary will focus on creating a hub for chiplet integration and advanced system-in-package (SiP) technologies. These next-generation solutions allow multiple chips to be combined into a single system, delivering higher performance, reduced power consumption, and improved reliability. This approach reflects the global shift toward system-level integration, an area where Paras Defence semiconductor plans to establish early leadership.

OSAT Facility Planned for Advanced 3D Packaging

As part of the expansion, the group is setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility. The advanced heterogeneous 3D packaging unit will cater to semiconductor devices used in optical and opto-electronic systems. It will handle chip assembly, packaging, and post-fabrication testing, addressing a critical gap between chip fabrication and final system deployment.

While chip design will be outsourced, the company’s core focus will remain on advanced packaging and assembly. According to the company, Paras Defence semiconductor strategy aims to move away from bulky traditional chips toward customised, compact, and energy-efficient designs tailored for defence and strategic applications.

Addressing India’s Advanced Packaging Gap

India has long been recognised for its strength in semiconductor design and has recently introduced supportive fabrication policies. However, domestic capabilities in advanced packaging remain limited, particularly for defence-grade electronics. Paras Semiconductor aims to bridge this gap by building local capacity in packaging, testing, and qualification of sensitive electronic components. This positions Paras Defence semiconductor initiatives as a key contributor to self-reliance in strategic technologies.

Why Semiconductor Packaging Matters for Defence

The semiconductor industry is undergoing a structural transformation, moving beyond transistor scaling to advanced packaging techniques such as chiplets, hybrid bonding, and 2.5D/3D heterogeneous integration. These technologies are now central to applications like high-performance computing, secure communications, radar systems, and electronic warfare.

For defence platforms, assured availability, long product lifecycles, and control over sensitive technologies are critical. In an era marked by geopolitical tensions, export controls, and supply chain disruptions, governments worldwide—including India—are incentivising trusted local manufacturing. Against this backdrop, Paras Defence semiconductor expansion aligns closely with national policy goals and the global push for resilient semiconductor supply chains.