Madhya Pradesh Secures ₹15,425 Cr in Semiconductor Investments, 14K Jobs Expected

Madhya Pradesh has emerged as a promising hub for semiconductor and electronics manufacturing with investment proposals exceeding ₹15,425 crore. These initiatives are projected to generate more than 14,450 employment opportunities. The announcements followed a two-day semiconductor summit that wrapped up in Indore on Saturday.

During the event, Chief Minister Mohan Yadav revealed that over a dozen investors have shown interest in investing around ₹5,800 crore. So far, five companies have been issued land allotment letters to facilitate their projects. Collectively, these ventures are expected to attract ₹9,625 crore in investments and create upwards of 4,450 direct jobs.

Yadav highlighted the state’s commitment to adopting future technologies, emphasizing Madhya Pradesh’s readiness to become a significant player in the semiconductor domain.

Notable investment proposals include Una Ecosystems, which plans to invest ₹2,000 crore in an electronics system design and manufacturing (ESDM) facility. This project alone is estimated to provide 2,000 jobs. Spintronics AI Semiconductors proposed a phased investment totaling ₹1,800 crore, while Lalwala Industries presented a ₹1,200 crore plan focused on semiconductor fabrication and chip design.

Other companies contributing proposals include Dhanush Healthcare Systems with ₹400 crore, Beyond Studios at ₹110 crore, Indusilica Semiconductors proposing ₹100 crore, Nanodrites Technology with ₹65 crore, and Truechip Solutions at ₹10 crore. These investments are expected to collectively create 1,200 jobs, with respective employment estimates of 500, 360, 150, 140, and 50 positions.

On July 22, 2026, Paras Semiconductors, a subsidiary of Paras Defence and Space Technologies, signed a memorandum of understanding (MoU) with the Madhya Pradesh government. The agreement outlines a ₹6,200 crore investment plan to establish a greenfield advanced semiconductor packaging and testing (OSAT) facility in the Indore-Ujjain region. Paras Semiconductors has already been allotted 43 acres in Vikram Udyogpuri, Ujjain. Meanwhile, land identification is underway for Spintronics.

The summit also underscored the strategic development of the Indore-Ujjain Economic Corridor as a center for semiconductor, electronics, and advanced packaging industries. Chief Minister Yadav announced upcoming plans to establish a Semiconductor Centre of Excellence as well as a Centre of Excellence dedicated to Photonics and Quantum Technologies to support innovation and research in these fields.

International interest was evident as delegations from Japan, South Korea, Taiwan, and Sweden participated in the summit, marking the event as a significant platform for global collaboration.

Ashok Chandak, CEO and President of the India Electronics and Semiconductor Association, praised Madhya Pradesh’s potential for semiconductor growth. Chandak pointed out the state’s advantages, including a skilled workforce, a robust industrial foundation, IT firms, and educational institutions. He stressed the need for ongoing government support and consistent policies given the long-term nature of semiconductor investments, which often span 10 to 30 years.

In 2025, Madhya Pradesh introduced a dedicated semiconductor policy to attract investments. Under this policy, eligible projects can receive incentives up to 25% of capital expenditure or 50% of central government incentives, whichever is less. Fabless semiconductor companies and intellectual property developers may also receive reimbursements amounting to 10-25% of development expenditure, capped at ₹25 crore per project.

Additional benefits include reimbursement of stamp duty and registration fees, a 6% interest subsidy on loans up to ₹10 crore for five years, and a power tariff subsidy of ₹2 per unit for the first decade of operations. These measures aim to create a competitive environment for semiconductor manufacturing and innovation within the state.

The summit’s second day focused on innovation, talent cultivation, and emerging technologies like artificial intelligence, advanced semiconductor processes, electronics manufacturing, and quantum technologies. A series of panel discussions explored ways to position India as a leading manufacturer of electronics products. A roundtable on photonics and quantum technologies also took place, highlighting the government’s intent to foster cutting-edge research and industry partnerships.

This summit positions Madhya Pradesh as an emerging semiconductor and electronics manufacturing destination, with substantial investments and job creation on the horizon. The government’s policy framework and infrastructure initiatives are designed to support sustained growth in these high-tech sectors.