Singapore-based semiconductor company Silicon Box has chosen Novara, a town in Italy’s Piedmont region, for its new €3.2bn ($3.4bn) chip plant.  

The investment aims to produce advanced “chiplets,” tiny components as small as a grain of sand, under a government-supported initiative.  

These tiny semiconductors are a cost-effective solution for creating powerful processors used in a variety of applications, from data centres to home appliances. 

Silicon Box’s new plant will look to address the pressing need for advanced packaging capacity, which is crucial for the development of next-generation technologies.  

The investment is expected to generate around 1,600 semiconductor jobs at the new manufacturing site and create additional jobs indirectly through supplier and construction activities. 

Construction of the Novara factory is scheduled to commence in mid-2025, with production anticipated to start in 2028. 

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The facility will support a range of emerging applications, including artificial intelligence, high-performance computing, electric vehicles, and edge computing, by providing advanced packaging and testing capabilities. 

Silicon Box co-founder and chairman Sehat Sutardja said: “We are excited to bring Italy to the forefront of chiplet deployment and the semiconductor  industry, through this investment into the world’s most advanced packaging solution.  

“It will enhance competitive strengths in design, artificial intelligence, large language models, electronic vehicles and automotive, mobile, wearables, smart consumer,  edge computing, and material sciences of the Italian ecosystem, and revolutionise Europe’s position in the global [semiconductors] supply chain. 

Silicon Box co-founder Weili Dai added: “Design and planning for the facility is already underway, with construction to commence  pending European Commission approval of planned financial support by the Italian State.” 

In July 2023, Silicon Box revealed plans for a $2bn semiconductor manufacturing foundry in Singapore.  

This facility, located in Tampines and spanning 73,000m², is projected to generate over 1,000 jobs with support from the Singapore Economic Development Board.