The Tata Group is in search of suitable land to establish a semiconductor chip Assembly, Testing, Monitoring, and Packing (ATMP) unit as part of its initial endeavours to foster a local manufacturing ecosystem, as per three informed sources.

Instead of immediately setting up a full-fledged fabrication plant, the Tata Group plans to concentrate on the ATMP unit for the near term, stated an anonymous source. They emphasised the current interest in semiconductor packaging, indicating the search for appropriate land for the unit.

A dedicated in-house team of 200-250 individuals has been assembled for the project, according to another anonymous source. The executives are actively exploring potential locations in Telangana, Tamil Nadu, and Karnataka. A senior official from Telangana assured that the state is ready to provide all necessary resources, matching the expectations of the Tata Group.

The group is contemplating the establishment of a packaging unit in Karnataka as well. While the group has inspected several sites in the three states, a final decision is pending, according to the same source.

A third source revealed that the Tata Group has initiated discussions with suppliers of semiconductor ATMP equipment, signalling that a decision on the location may be imminent.

To spearhead its semiconductor assembly and packaging endeavours, the Tata Group has established TATA Outsourced Semiconductor Assembly and Test (OSAT), led by Raja Manickam as the CEO. The packaging and assembly segment is viewed as the entry point into the broader global semiconductor fabrication ecosystem. ATMP and OSAT facilities are crucial for testing and packaging chips, which are then integrated into electronic devices such as those found in cars, TVs, and various consumer durables and industrial equipment.

The government has allocated Rs 76,000 crores as part of a financial assistance scheme to attract semiconductor fabrication and packaging units to India. The first investment under this scheme has been made by US-based Micron Technology, which is setting up its ATMP unit in Sanand, Gujarat. Tata Group, when applying for subsidies, would be eligible for support from both central and state governments, according to government officials.