Silicon Box announces €3.2bn investment for new chip foundry in Piedmont, Italy

In a major move to expand its global footprint, Silicon Box has chosen Piedmont, Italy, near Novara, as the site for its new €3.2 billion ($3.6 billion) advanced semiconductor packaging facility. This significant investment marks the introduction of first-of-its-kind semiconductor manufacturing capabilities in Europe, focusing on chiplet architecture and advanced testing methods. The facility is set to commence construction in mid-2025 with production operations expected to begin in 2028.

Dr. Byung Joon (BJ) Han, CEO of Silicon Box, along with co-founders Dr. Sehat Sutardja and Weili Dai, in collaboration with key Italian officials including Minister Adolfo Urso, Presidente Alberto Cirio of the Piedmont region, and Mayor Alessandro Canelli of Novara, announced the initiative at a signing ceremony in Rome. This project, pending approval from the European Commission, is anticipated to create about 1,600 semiconductor jobs directly and thousands more in indirect employment through supplier and construction roles.

The choice of Novara, following a thorough evaluation of potential sites across Northern Italy, aligns with the strategic objectives agreed upon with the Italian government. The new facility is expected to be a linchpin in strengthening Europe’s semiconductor supply chain and driving innovation across several high-tech industries, including artificial intelligence (AI), electric vehicles (EV), and smart consumer products.

Silicon Box’s Novara facility will not only provide advanced packaging and testing capacities but also position Italy at the forefront of next-generation technology applications. The planned facility will mirror Silicon Box’s flagship foundry in Singapore, known for its advanced semiconductor packaging solutions, and will extend capabilities into 3D integration and testing.

Dr. Sehat Sutardja, Chairman and co-founder, expressed the strategic vision behind this investment: “This venture into the world’s most advanced packaging solutions will enhance competitive strengths in design, AI, EVs, and more, revolutionizing Europe’s stance in the global semiconductor supply chain.”

Silicon Box’s technology focuses on the chiplet concept, which Dr. Sutardja introduced in 2015. This approach involves manufacturing individual system modalities as standalone “chiplets” on a wafer, then integrating these functionalities into a system through advanced packaging. This method offers a high-performance alternative to traditional semiconductor manufacturing and is fundamental to the company’s innovative edge.

Weili Dai, co-founder, highlighted the planning stage’s progress, noting that construction is set to begin once the necessary financial support approvals are secured. This project is poised to catalyze a broader ecosystem of investments and innovation, not just in Italy but across the European Union.

Silicon Box, established in 2021 by semiconductor veterans Dr. Han, Dr. Sutardja, and Weili Dai, has quickly become a significant player in the semiconductor industry, known for high yields in advanced packaging technology and a strong record in innovative developments.