Madhya Pradesh advances ₹6,200 crore semiconductor packaging project

Madhya Pradesh has placed a proposed ₹6,200 crore advanced semiconductor packaging facility at the centre of its investment strategy as Chief Minister Mohan Yadav unveiled fresh technology commitments at the Semiconductor Summit 2026 in Indore. The two-day summit, inaugurated on Friday at the Brilliant Convention Centre, attracted investment proposals worth approximately ₹5,800 crore, potentially generating more than 10,000 jobs. Separately, five companies received letters of intent for land allocation covering projects valued at ₹9,625 crore. The proposed semiconductor facility, involving Paras Semiconductors, a subsidiary of Paras Defence and Space Technologies, represents one of the state's largest identified investments in advanced chip packaging. The company signed a memorandum of understanding with the state government on July 22 for a greenfield outsourced semiconductor assembly and testing plant. The project is planned for the Indore-Ujjain corridor, where the government has identified approximately 50 acres for development. Its proposed capabilities include advanced packaging technologies associated with increasingly complex semiconductor devices, although commercial production schedules and confirmed manufacturing capacities remain undisclosed. Advanced packaging allows multiple semiconductor components to be integrated within compact assemblies, improving communication between chips and potentially reducing power consumption. Technologies involving three-dimensional integration are particularly relevant to artificial intelligence accelerators, high-performance computing and specialised processors. The proposed plant has been described as incorporating sophisticated packaging and testing capabilities. However, claims that it will become India's first operational 3D artificial intelligence chip packaging facility remain dependent on implementation, technical specifications and the commissioning of competing projects. Yadav said the summit demonstrated growing interest among technology companies in establishing manufacturing, research and engineering operations in Madhya Pradesh. More than 1,000 delegates participated, including representatives from Japan, South Korea, Taiwan and Sweden. The investment proposals announced during discussions included ₹1,800 crore from Spintronics AI Semiconductors for phased development and ₹1,200 crore from Lalwala Industries for semiconductor manufacturing and chip design activities. Other prospective investors included companies operating in electronics manufacturing, semiconductor design, healthcare technology and associated services. The government indicated that the proposals would require further approvals and implementation agreements before their anticipated employment benefits could materialise. Among the five companies receiving land allocation letters, Cytech RE proposed a ₹6,415 crore hyperscale data centre with a capacity of 50 megawatts at Ganga Malanpur in Gwalior. The project represents the largest individual investment covered by those letters. Una Ecosystems proposed a ₹2,000 crore lithium-cell manufacturing facility in Bhopal, while Auriga IT Solutions outlined a ₹500 crore global capability centre in Indore. Meena Circuits and Kaynes Electronics proposed electronics manufacturing investments of ₹400 crore and ₹310 crore respectively. These investments extend beyond semiconductor fabrication and packaging, reflecting the government's broader effort to attract data infrastructure, electronics manufacturing and technology services. The distinction is significant because the aggregate investment figures announced at the summit encompass several industrial categories rather than semiconductor production alone. Yadav also announced plans for a Semiconductor Centre of Excellence and a separate Centre of Excellence for Photonics and Quantum Technologies. Both institutions are intended to support research, chip design, innovation and specialised workforce development. The Madhya Pradesh State Electronics Development Corporation exchanged memoranda of understanding with five institutions, including SEMI India, Semiconductor Laboratory in Mohali and the Electronics Sector Skills Council of India. The agreements cover technical collaboration, training, research and industry engagement. Their implementation is expected to involve cooperation between government agencies, academic institutions and private companies seeking access to specialised semiconductor expertise. The state's Semiconductor Policy 2025 offers financial incentives for eligible projects, including capital assistance and subsidised electricity. Officials have presented these measures as instruments for attracting investment into a sector requiring substantial initial expenditure and dependable infrastructure. Yadav assured participating companies of administrative assistance, including streamlined approvals, single-window clearances and access to electricity supplies. He also identified the Indore-Ujjain Economic Corridor as a priority location for semiconductor packaging, electronics manufacturing and chip design. Seven additional companies received letters of intent for office accommodation at the Electronics Complex in Pardesipura, Indore. Their proposed activities include semiconductor design, engineering services, research, artificial intelligence applications and electronics development. The allocations cover approximately 44,816 square feet and carry projections of 1,280 employment opportunities. Among the beneficiaries are ADT Semiconductors, Spintronics AI Semiconductors, H-Semi Products and Truechip Solutions. The summit's programme includes technical discussions on semiconductor supply chains, advanced packaging, fabless chip design, photonics, quantum technologies and workforce requirements, alongside exhibitions involving more than 50 participating companies. The article Madhya Pradesh advances ₹6,200 crore semiconductor packaging project appeared first on Arabian Post.