Madhya Pradesh is set to enter the semiconductor manufacturing sector with the proposed establishment of the state's first semiconductor chip manufacturing unit at Vikram Udyogpuri in Ujjain. Paras Defence is planning to invest around ₹6,200 crore in the project and has sought approximately 55 acres of land from the Madhya Pradesh Industrial Development Corporation (MPIDC).

The project is currently at the land-allotment and formalities stage. MPIDC Executive Director Rajesh Rathore said the company has initiated the process for acquiring land for the proposed facility. Company officials have also visited Ujjain and inspected the identified land, according to the information shared by MPIDC.

Once the required land and other formalities are completed, preparations for the foundation stone-laying ceremony are expected to begin.

₹6,200 Crore Investment Planned

The proposed semiconductor facility is expected to represent an investment of around ₹6,200 crore. The project could significantly expand Ujjain's industrial profile and strengthen Madhya Pradesh's presence in India's growing semiconductor ecosystem.

The unit is planned at Vikram Udyogpuri, an industrial area that has emerged as an important investment destination in the state.

55 Acres Sought For Unit

Paras Defence has sought around 55 acres of land from MPIDC for setting up the manufacturing facility. The land process is currently underway, with officials working on the required procedures before construction can begin.

The company has already conducted a site inspection, indicating that the project has moved beyond the initial proposal stage.

Around 7,000 Jobs Expected

The semiconductor project is expected to generate employment for around 7,000 people, through a combination of direct and indirect opportunities.

Besides employment, the facility could create demand for supporting industries and services linked to electronics, semiconductor manufacturing, logistics and other industrial activities.

The project may therefore have an impact beyond the proposed manufacturing unit itself, potentially encouraging additional investments connected to the semiconductor and electronics ecosystem in the region.

Ujjain Could Become Supply Hub

With semiconductor chips increasingly required across sectors such as electronics, automobiles, telecommunications and advanced technology, the proposed unit could give Ujjain a strategic role in the state's industrial expansion.

The facility is also expected to strengthen the city's potential as a supply hub for companies requiring semiconductor components, although the scale and nature of future supply-chain development will depend on the project's execution and subsequent investments.

For Madhya Pradesh, the proposed unit marks a significant step towards building a presence in one of India's strategically important technology and manufacturing sectors.