The Italian facility will enable next generation applications in artificial intelligence, high performance computing, large language models, automotive and electric vehicles, wearables, mobile, and others


Silicon Box to build new chip plant in Italy. (Credit: Samuel Faber from Pixabay)

Singapore-based semiconductor packaging company Silicon Box has unveiled plans to invest up to $3.6bn in collaboration with the Italian government to construct a new semiconductor assembly and test facility in Northern Italy.

Silicon Box expects the facility to help cope with the demand for advanced packaging capacity to allow adoption of next-generation technology by 2028.

The multi-year investment will enable the company to further expand into 3D integration and testing by replicating its flagship foundry in Singapore.

Upon completion, the Italian site is expected to generate nearly 1,600 jobs.

It is anticipated that the construction of the plant will also result in thousands of potential indirect supplier and contract construction roles.

The facility’s design and planning will be started immediately, while construction will begin after the European Commission approves the Italian government’s proposed financial support.

Silicon Box co-founder and CEO Byung Joon Han said: “We believe innovation is driven by cultural values that embrace curiosity, passion, and a tireless commitment to excellence.

“Italy was one of our top choices for global expansion because we found that its culture shares our values.

“We have seen great promise through our collaborations with the Italian government and various regional, institutional and commercial stakeholders to date, which we know will be necessary to successfully execute this first-of-a-kind project in Europe.”

According to the chip packaging firm, the new integrated production facility would act as a catalyst for larger ecosystem investments and innovation in Italy and the European Union.

The Italian facility will enable next-generation applications in artificial intelligence (AI), high-performance computing (HPC), large language models (LLM), automotive and electric vehicles (EV), wearables, mobile, and others.

It will be built as per Europe’s net zero principles to lower the carbon footprint and the impact on the environment, said the company.

In January this year, Silicon Box started mass production at its 750,000ft2 advanced chip packaging factory in Singapore. The company also closed its Series B funding round, raising $200m to reach a valuation of over $1bn.