Silicon Box in Italy: Singapore startup to build $3.4B semiconductor hub

Silicon Box in Italy: Singapore startup to build $3.

• Singapore-based semiconductor startup Silicon Box has decided to establish its new multibillion-euro chip factory in the town of Novara, located in Italy’s industrialised northwest Piedmont region. This information comes from two sources close to the matter who spoke to Reuters. Silicon Box.
• This investment by Silicon Box is significant for several reasons.

OUR TAKE
As for supporting the EU initiative under the EU Chips Act, Silicon Box also made efforts; The company is investing in state-of-the-art facilities and infrastructure across Europe to increase production capacity, ensuring that the EU can meet both domestic and global demand for semiconductors. Apart from engaging in R&D initiatives aimed at advancing semiconductor technologies, it also contributed to training and education programs to build a robust talent pool in the semiconductor sector within Europe.
–Miurio Huang

Silicon Box, a semiconductor startup from Singapore, has selected Novara in Italy’s Piedmont region for its new €3.2 billion chip factory, which highlights Italy’s efforts to become a semiconductor hub, promising 1,600 new jobs and supporting the EU’s goal of boosting European chip production.

What happened

Singapore-based semiconductor startup Silicon Box has decided to establish its new multibillion-euro chip factory in the town of Novara, located in Italy’s industrialised northwest Piedmont region.

Marvell, the founders of U.S chipmaker, plans to invest 3.2 billion euros ($3.4 billion) to produce ‘chiplets’ in Italy under a government-backed deal.

Chiplets are tiny semiconductors that can be combined through advanced packaging to form a single processor, powering a range of devices from data centres to household appliances.

This project is part of Italy’s ongoing efforts to attract technology company investments, including a previous deal with U.S. chipmaker Intel that was later shelved. The final location decision is expected to be confirmed on June 28.

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Why it’s important

This investment by Silicon Box is significant for several reasons.

It underscores Italy’s strategic push to attract high-tech investments and become a hub for semiconductor manufacturing. The creation of this factory is expected to generate 1,600 direct jobs at full capacity, along with additional indirect jobs related to construction, supply, and logistics, providing a substantial economic boost to the region.

Furthermore, this move aligns with the broader European Union initiative under the EU Chips Act, which aims to enhance semiconductor production capacity within Europe, reducing dependency on non-European suppliers. The investment also represents a critical step in Italy’s commitment to bolstering its technology sector, supported by nearly 5 billion euros in state aid to lure foreign chipmakers. This development follows other significant investments in the region, such as the French-Italian firm STMicroelectronics’ 5 billion-euro silicon carbide plant, reinforcing Italy’s emerging status as a key player in the global semiconductor industry.