Singapore-based semiconductor firm Silicon Box intends to invest up to $3.6 billion in new chip plant in Italy.

The firm said in a statement on Monday that the semiconductor assembly and test facility in Northern Italy will help meet critical demand for advanced packaging capacity to enable next generation technologies that Silicon Box anticipates by 2028.

The multi-year investment will replicate Silicon Box’s flagship foundry in Singapore which has proven capability and capacity for the world’s most advanced semiconductor packaging solutions, then expand further into 3D integration and testing.

When completed, the new facility will support approximately 1,600 Silicon Box employees in Italy.

The construction of the facility is also expected to create several thousand more jobs, including eventual hiring by suppliers.

Design and planning for the facility will begin immediately, with construction to commence pending European Commission approval of planned financial support by the Italian State.

As well as bringing the most advanced chiplet integration, packaging, and testing to Italy, Silicon Box’s manufacturing process is based on panel-level-production; a world leading, first-of-its-kind combination that is already shipping product to customers from its Singapore foundry.

Through the investment, Silicon Box has plans for greater innovation and expansion in Europe, and globally.

The new integrated production facility is expected to serve as a catalyst for broader ecosystem investments and innovation in Italy, as well as the rest of the European Union.

“We believe innovation is driven by cultural values that embrace curiosity, passion, and a tireless commitment to excellence,” said Dr. Byung Joon (BJ) Han, Co-founder and Chief Executive Officer of Silicon Box.

“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,” he added.

Dr. Sehat Sutardja, Co-founder and Chairman of Silicon Box, said this investment will enhance competitive strengths in design, artificial intelligence (AI), large language models (LLMs), electronic vehicles (EVs) and automotive, mobile, wearables, smart consumer, edge computing, and material sciences of the Italian ecosystem, and revolutionize Europe’s position in the global [semiconductors] supply chain.

Mike Han, Silicon Box’s Head of Business, said that Silicon Box’s new foundry in Italy will be able to accept wafers from all foundries and support a wide variety of customers, worldwide, through its innovative approach.

“The location is well suited to work with Europe’s existing and planned semiconductor wafer fabrication clusters in Italy, Germany, and France,

“Proximity will enable close collaboration from design through to final manufacturing, and help increase resilience and cost efficiency of the European and global semiconductor supply chain, at a time when there is a global shortage for this type of technology,” he added.

The firm’s Co-founder Weili Dai said that Silicon Box’s investment in Italy can act as a catalyst for further investments by ecosystem companies and for building and attracting the talent needed to support a thriving European semiconductor industry.

“It will also enable existing Italian and European semiconductor interests to maximize their existing core competencies and drive further efficiency and innovation through the creative and cost-efficient deployment of advanced packaging and chiplet architecture to support their own strategic objectives,

“This is particularly significant for the development of native artificial intelligence, large language models, supercomputers, mobile, wearables, smart factories, and edge computing companies,” she added.

According to her, this new Silicon Box AI-powered smart factory will be the first to showcase the ecosystem’s technology end-to-end; from initial design and construction to full process automation, as well as employee and customer training from the firm’s comprehensive digital twin.

“This will facilitate seamless expansion, employee and customer immersion, and groundbreaking efficiencies in management and performance monitoring,” she added.

It is noted that recent global disruptions emphasize the need to build a more resilient supply chain for semiconductors in Europe.

Silicon Box supports the European Commission’s goal to reclaim 20 percent of global semiconductor manufacturing capacity by 2030, and is committed to supporting a vision of a global semiconductor supply chain that is resilient and geographically balanced.

Silicon Box is an advanced semiconductor packaging company, specializing in cutting-edge integration technology and manufacturing processes.

The firm offers solutions that enable chiplet architecture, as well as high performance alternatives to traditional packaging schemes.

It built it’s first advanced packaging facility in Singapore within a year, and began shipping finished products to customers three months after the factory’s grand opening, showcasing unique capability for fast project execution, which will also apply to the Italian factory.

Singapore’s Silicon Box valuation reaches over $1B after $200M Series B funding raise