Tata Group is exploring land to set up a semiconductor chip assembly, testing, monitoring and packing (ATMP) facility as part of its initial efforts to develop a local manufacturing ecosystem. Key officials are exploring suitable locations in Telangana, Tamil Nadu and Karnataka.

The Group will focus on the ATMP unit instead of setting up a full-fledged fabrication plant for the near term. It has formed an in-house team of 200-250 individuals to work on the project. Tata is also planning to set up a packaging unit in Karnataka, and has visited several sites in three states, and is in the process of making final decision. In addition, it has already begun discussions with suppliers of semiconductor ATMP equipment.

Tata Group has created a semiconductor assembly and packaging company TATA Outsourced Semiconductor Assembly and Test (OSAT). Moreover, the state government would provide support, including the type of land, water, electricity and other resources for setting up the proposed unit.

The government has earmarked Rs 76,000 crore as a financial assistance scheme to attract semiconductor fabrication and packaging units to come up in the country. Tata Group would be eligible for the subsidies, when the company applies for it.