Chips in Italy, $3.2 Billion Investment from Singapore Company

Silicon Box is investing €3.2 billion in a microchip plant in Italy. It is a new production facility, the first in the European Union. The agreement was announced by Italy’s Minister of Business and Production Adolfo Urso and Silicon Box co-founder and CEO Byung Joon (BJ) Han. It is a Singapore-based company specializing in chiplet integration, advanced packaging, and testing technologies. The plant will be built in northern Italy. According to a report in the Italian economic newspaper Il Sole 24, it is likely to be located in Veneto, Lombardy, or Piedmont, with the Novara area having advantages for logistical reasons, as well as the supply chain and locally existing know-how. This will contribute to meeting the demand for semiconductor assembly to create technologies such as “next-generation applications in artificial intelligence, high-performance computing, and components for electric vehicles,” as is written in a note from the Ministry of Economic Development (Ministry of Business and Industry “Made in Italy”).

Silicon Box’s investment is part of a European strategy, marked by the Chips Act and the Italian microelectronics strategy, aimed at strengthening the sector in line with the “chip strategy,” according to which Italy focuses on investments in chip design, new materials, and advanced assembly. And it’s all about meeting the goals of the European Union, which would like to reach 20% of the world’s semiconductor manufacturing capacity by 2030.

There are likely to be strong government incentives, but their actual existence and extent are unknown at this time. The company is expected to create 1600 new jobs, in addition to the positions needed to build the plant, as well as those working in supply and logistics. Design and planning are already underway, but approval from the European Commission is awaited before work can begin.

“Recent global turmoil highlights the need for a more resilient semiconductor supply chain in Europe. The government is putting chips and microelectronics at the center of its strategic priorities,” said Minister Adolfo Urso. “We are convinced that this new structure will catalyze further investment and innovation in Italy.”