Tata Group Looking For Land To Set Up Chip Assembly Unit, Evaluating Sites In Telangana, Tamil Nadu And Karnataka: Report

Tata Group is currently scouting for land to establish a semiconductor chip assembly, testing, monitoring, and packing (ATMP) unit as part of its initial steps towards a local manufacturing ecosystem.

The company's immediate priority is the ATMP unit, rather than establishing a full-fledged chip fabrication facility, Livemint reported citing sources.

“Supply chain for semiconductor chip fabrication unit is sometime away but there is a lot of interest in semiconductor packaging. It is looking for land to set up the unit," one of the sources was quoted as saying in the Livemint report.

The company has formed an in-house team of 200-250 individuals to work on the project.

Executives are exploring suitable locations in Telangana, Tamil Nadu and Karnataka, he added.

A senior official from the Telangana government was quoted in the report as saying that the state was ready to meet all the requirements of the company, including land, water, power, and other essentials.

The company is reportedly also planning to set up a packaging unit in Karnataka.

“It has been to several sites in three states, but a final decision is yet to be communicated," he said.

The Tata Group has reportedly also initiated talks with vendors of semiconductor ATMP equipment, suggesting that the company is nearing a decision on the project's location.

Tata Group has created a semiconductor assembly and packaging company TATA Outsourced Semiconductor Assembly and Test (OSAT), headed by Raja Manickam as the chief executive officer.

The fields of packaging and assembly are seen as the gateway to the broader global semiconductor fabrication industry. Facilities like ATMP and OSAT play a crucial role in testing chips for electronic applications and in packaging these chips, which are sliced from wafers and then integrated into electronic devices found in automobiles, televisions, and a wide range of consumer and industrial equipment.