Paras Semiconductors, a subsidiary of Indian defense company Paras Defence & Space Technologies, announced a strategic technology partnership with US-based BroadPak Corporation on November 6 to build advanced semiconductor packaging capabilities in India, anchored by a planned INR62 billion (US$658.77 million) OSAT facility in Madhya Pradesh.
The proposed heterogeneous integration and 3D packaging plant, located in the Ujjain-Indore corridor, will develop capabilities across 2.5D/3D packaging, chiplet integration, hybrid bonding, wafer-level and panel-level fan-out packaging, co-packaged optics, and advanced testing, the company said. BroadPak will also serve as the facility's first customer, BW Businessworld reported.
BroadPak to transfer packaging know-how
Under the collaboration, Paras Semiconductors will gain access to BroadPak's design, manufacturing, and integration intellectual property, along with technology transfer and process know-how in 2.5D/3D packaging and chiplet integration, according to the statement carried by The Economic Times. The partners will also explore joint development of packaging platforms for AI and high-performance computing, as well as training for Indian engineers.
Founded in 2007 and headquartered in San Jose, California, BroadPak provides 2.5D/3D integration technologies and design services. Its founder and CEO, Farhang Yazdani, said advanced packaging "is becoming central to the next generation of semiconductor innovation, particularly as AI and high-performance computing push the boundaries of conventional chip architectures."
Production targeted for late 2028
The planned capex of about INR62 billion will be spread over six years, with construction expected to begin in the first quarter of 2027 and commercial operations in the fourth quarter of 2028. The plant will start with a capacity of 10,000 wafers a month and scale to more than 50,000 wafers a month in two phases over six to seven years.
Santosh Kumar, CEO of Paras Semiconductors, told the outlet the company is targeting US$1 billion in revenue over the next decade and plans to export about 90% of its output, mainly to Europe, the US, Taiwan, South Korea, Singapore, and Malaysia. Commercial applications will be the main revenue driver, with defense and strategic electronics a secondary market, he said.
Central incentives still pending
The project has been approved by the Madhya Pradesh government, and the company will apply for incentives under the second phase of the India Semiconductor Mission (ISM 2.0), Kumar said. Central government approval and any related incentives have yet to be secured. Paras plans to fund the project through investors rather than debt, though it did not disclose funding commitments.
Munjal Sharad Shah, managing director of Paras Defence & Space Technologies, said the company's entry into semiconductors "represents a strategic expansion into a technology domain that is increasingly critical to India's AI and data centers and industrial capabilities."
Article edited by Jerry Chen
