Silicon Box Chooses Novara for Multi-Billion Euro Chip Factory in Italy

126

Singapore-based semiconductor firm Silicon Box has selected Novara, a town in the industrialized northwestern region of Piedmont, Italy, as the site for its new multi-billion-euro chip factory, according to an announcement by the industry ministry on Friday.

The startup, founded three years ago by the creators of U.S. chipmaker Marvell (MRVL.O), plans to invest 3.2 billion euros ($3.42 billion) in the project. This significant investment, under a government-backed deal, aims to produce “chiplets” in Italy. Chiplets are tiny semiconductor components, sometimes as small as a grain of sand, that are combined through a process known as advanced packaging. This method efficiently binds small semiconductors to form a single processor capable of powering a wide range of devices, from data centers to household appliances.

“Silicon Box offers Piedmont the opportunity to become a semiconductor hub,” stated Industry Minister Adolfo Urso, highlighting the project’s potential to elevate the region’s status in the semiconductor industry.

This ambitious project is part of Italy’s ongoing efforts to attract significant investments from technology companies. Notably, this initiative follows a previously shelved deal with U.S. chipmaker Intel (INTC.O). The investment from Silicon Box is expected to create 1,600 new jobs at full capacity, with additional indirect employment opportunities arising from the construction of the facility and the broader supply and logistics ecosystem supporting the project.

The Italian government is currently negotiating with European Union authorities to secure funding for a portion of the overall 3.2-billion-euro investment. Minister Urso mentioned that the state contribution would be less than 40% of the total investment. Italy has allocated nearly 5 billion euros in state aid to attract foreign chipmakers, demonstrating its commitment to becoming a key player in the semiconductor industry.

Under the EU Chips Act, public funding for such projects is predominantly provided by national governments, while the European Commission in Brussels is responsible for vetting the projects. In a related development, French-Italian company STMicroelectronics (STMPA.PA) recently received EU approval for a 5-billion-euro silicon carbide plant being constructed in Italy.

The selection of Novara for Silicon Box’s new factory represents a strategic move to position Piedmont as a significant hub for semiconductor manufacturing in Europe. The project not only promises substantial job creation but also signifies a major step in Italy’s broader strategy to boost its technological and industrial capabilities.