Pradeep is right. All the vendor has to do is to peel off the protective label and then mount the processor and the heatsink. It comes with pre-applied thermal paste. However, if you are planning to seriously overclock your processor, it would make sense to remove the heatsink and apply a higher grade thermal paste over it. But for most purposes and casual gaming, the thermal paste that comes along with the processor/heatsink is more than enough. You use thermal paste to uniformly absorb and distribute the heat and provide a better heat-transfer contact between the processor and the heatsink, for more effective cooling.
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