Paras Defence enters semiconductor space with new subsidiary

Paras Defence and Space Technologies Ltd on Friday, February 27, announced the incorporation of a subsidiary, Paras Semiconductors Private Ltd, marking its entry into India’s rapidly-expanding semiconductor ecosystem.

The new entity was incorporated on February 27, 2026, in India. Paras Defence and Space Technologies Ltd (PARAS) will act as the holding company, with Paras Semiconductors Private Limited established as its subsidiary, stated the exchange filing.

The subsidiary will operate in the semiconductor industry and has been set up to establish a state-of-the-art advanced heterogeneous packaging and 3D packaging OSAT (outsourced semiconductor assembly and testing) facility. The proposed unit will focus on artificial intelligence (AI), high-performance computing (HPC), networking and data centre applications.

The company said no governmental or regulatory approvals were required for the incorporation.

PARAS has subscribed to 70,000 equity shares of ₹10 each in the subsidiary, aggregating to ₹7 lakh, through a 100% cash consideration for the initial subscription. Following the allotment, PARAS holds a 70% equity stake in Paras Semiconductors Private Ltd.

The development comes at a time when several large Indian conglomerates and technology players are making aggressive bets on semiconductors, spanning fabrication, chip design and assembly. Vedanta Ltd built what is positioned as India’s first major semiconductor fabrication plant in Gujarat.

The development comes amid growing momentum in India’s expanding chip manufacturing and electronics ecosystem, where a few other big semiconductor players are also scaling up investments and operations.

CG Power and Industrial Solutions operates India’s first large-scale OSAT (assembly and test) facility in Sanand, Gujarat, in partnership with Renesas Electronics, strengthening the country’s backend manufacturing capabilities.

Additionally, Kaynes Technology India, through its subsidiary Kaynes Semicon, has set up a semiconductor unit in Gujarat with a planned production capacity of around six million chips per day, targeting both domestic and export markets.

The policy push has also intensified at the Centre. A month ago, Union IT and Electronics Minister Ashwini Vaishnaw outlined a fresh roadmap to strengthen India’s semiconductor ecosystem while speaking at the World Economic Forum in Davos. He said India’s position in the global semiconductor space has shifted “from scepticism to strong global confidence” over the past few years, adding that the country is steadily emerging as a global hub for semiconductor design talent. Vaishnaw asserted that 50% of the world’s semiconductor design work will eventually be carried out from India.

Shares of Paras Defence and Space Technologies Ltd ended marginally lower on Friday, February 27, by 0.38% at ₹634.65 on the NSE.

(Edited by : Shoma Bhattacharjee)