diff --git a/chip_data/setup.py b/chip_data/setup.py
new file mode 100644
index 0000000..408c88a
--- /dev/null
+++ b/chip_data/setup.py
@@ -0,0 +1,56 @@
+import os
+
+from parse_chip_data import gen_peltool_json
+from setuptools import setup
+from setuptools.command.build_py import build_py
+
+# Typically in files like this we'd use find_packages() to traverse directories
+# for any static packages. However, we are trying to add data to a package that
+# will actually exist in another repository. Therefore, we have to explicitly
+# list out the package name, directory, and data information.
+
+# We are building data for the following module:
+package_name = "pel.hwdiags"
+
+# Since we are not using find_packages() we have to provide a package directory,
+# but in this case nothing exists because there are no static package
+# directories. Therefore, we will just use the empty string.
+package_dir = ""
+
+# Split the package data directory into its components.
+data_dir_components = [*package_name.split("."), "data"]
+
+# It is important to note that '/' must be used as the path separator, even on
+# Windows. Setuptools will automatically convert the slashes where appropriate.
+package_data_glob = "/".join(data_dir_components)
+
+
+# This is a custom build class that is used to dynamically build the data files.
+class my_build_py(build_py):
+    def run(self):
+        if not self.dry_run:  # honor --dry-run flag
+            # Make sure the build directory for the data exists.
+            # Yes, os.path.join() is necessary in this case, which is different
+            # that what is stated above regarding package_data_glob.
+            data_dir = os.path.join(self.build_lib, *data_dir_components)
+            self.mkpath(data_dir)
+
+            # Generate the PEL parser data JSON from the Chip Data XML.
+            # TODO: The list of data file directories will need to be
+            #       configurable via the package config in the bitbake recipes.
+            for chip in ("p10_10", "p10_20", "explorer", "odyssey"):
+                gen_peltool_json(chip, data_dir)
+
+        # Call the superclass run() to ensure everything else builds.
+        super().run()
+
+
+setup(
+    name="openpower-hw-diags-pel-parser-data",
+    version=os.getenv("PELTOOL_VERSION", "1.0"),
+    classifiers=["License :: OSI Approved :: Apache Software License"],
+    cmdclass={"build_py": my_build_py},  # register custom build class
+    packages=[package_name],
+    package_dir={package_name: package_dir},
+    package_data={package_name: [package_data_glob]},
+)