www.eenewseurope.com, Dec. 20, 2024 –
The European Commission has approved a €1.3 billion subsidy from the Italian government to Silicon Box for its advanced packaging and testing facility in Novara, in the Piedmont region.
The plant will support chiplet-style manufacturing of components on panels, rather than at wafer level. Construction is expected to begin in the 2H25, with initial production planned for 1Q28. The plant, which is expected to be operating at full capacity in 2033, is expected to process approximatively 10,000 panels per week.
"This strategic investment in Italy represents a pivotal moment in Europe's semiconductor renaissance," said Byung Joon Han, CEO of Silicon Box, in a statement. "By bringing our advanced packaging technologies to the heart of Europe, we're not just expanding our global footprint – we're creating a cornerstone of the EU's semiconductor ecosystem that will serve critical sectors from automotive to artificial intelligence."
Silicon Box has made a number of undertakings to obtain the direct grant from the Italian government, which represents about 40 percent of the planned investment of €3.2 billion.
Silicon Box has agreed to implement a European priority order system in the case of a supply shortage in line with the requirements of the European Chips Act.
The European Commission approved the Italian measure on the basis that Silicon Box would be creating a European first-of-its-kind facility and that the work would not happen without public support. The support has to be minimum amount without which the project would not happen and Silicon Box has agreed to share any profits above current expectations with Italy.
"The €1.3 billion Italian measure approved today supports a first-of-a-kind facility for advanced packaging of chips. It ensures that key players in the telecommunications, automotive, or consumer electronics sectors have access to high-performant, reliable and energy efficient chips. This will support our digital and green transitions and help create high-skilled employment. At the same time, we ensure that possible distortions of competition are limited," said Teresa Ribera, executive vice-president for a clean, just and competitive transition at the European Commission, in a statement.