Silicon Box reveals $3.6B foundry agreement, sets up cutting-edge facility in Northern Italy.

Silicon Box, a leading panel-level packaging Foundry, has announced its plans to invest up to $3.6 billion (€3.2 billion) in Northern Italy for the establishment of a state-of-the-art semiconductor assembly and test facility. This collaboration with the Italian government aims to meet the growing demand for advanced packaging capacity, which will enable next-generation technologies by 2028. The new facility will replicate Silicon Box’s successful foundry in Singapore and expand into 3D integration and testing. It is expected to employ approximately 1,600 people and create several thousand more jobs in the region.

Silicon Box’s manufacturing process is based on panel-level production, a groundbreaking approach that combines chiplet integration, packaging, and testing. This unique combination has already proven successful in its Singapore foundry, where products are being shipped to customers. With this investment, Silicon Box aims to foster innovation and expansion not only in Europe but also globally. The integrated production facility in Italy is expected to drive further investments and innovation within the Italian and European semiconductor ecosystems.

Dr. Byung Joon (BJ) Han, co-founder and CEO of Silicon Box, stated that Italy was chosen for global expansion due to its shared cultural values of curiosity, passion, and a commitment to excellence. The company has already established promising collaborations with the Italian government and various stakeholders, which will be crucial for the success of this project in Europe.

Dr. Sehat Sutardja, co-founder and Chairman of Silicon Box, expressed excitement about bringing advanced chiplet integration, packaging, and testing to Italy. He believes that this investment will enhance Italy’s competitive strengths in various sectors such as design, artificial intelligence (AI), electronic vehicles (EVs), and material sciences. Furthermore, it will revolutionize Europe’s position in the global semiconductor supply chain.

The new foundry in Italy will play a significant role in driving innovation across the Italian and European semiconductor ecosystems. Its strategic location will enable close collaboration with existing and planned semiconductor wafer fabrication clusters in Italy, Germany, and France. This proximity will enhance resilience and cost-efficiency in the European and global semiconductor supply chain, addressing the current shortage of advanced technology.

Silicon Box’s investment in Italy is expected to act as a catalyst for further investments by ecosystem companies, attracting talent and supporting the growth of the European semiconductor industry. It will enable Italian and European semiconductor interests to maximize their core competencies and drive efficiency and innovation through advanced packaging and chiplet architecture. This is particularly important for the development of artificial intelligence, large language models, supercomputers, mobile devices, wearables, smart factories, and edge computing companies.

The new Silicon Box facility will showcase the entire technology ecosystem, from design and construction to full process automation. It will prioritize resilience and sustainability, adhering to Europe’s net-zero principles and minimizing its carbon footprint. Silicon Box is committed to supporting the European Commission’s goal of reclaiming 20 percent of global semiconductor manufacturing capacity by 2030.

Silicon Box has a proven track record in fast project execution, as demonstrated by the successful establishment of its Singapore foundry. The company’s products and practices prioritize sustainability and environmental standards across its global operations, which will also be upheld in its first global facility in Northern Italy.

This announcement reflects Silicon Box’s commitment to driving innovation in the semiconductor industry and building a resilient and geographically balanced global supply chain. The company aims to leverage its expertise, technology, and partnerships to solve the unique challenges of chiplet adoption and contribute to the advancement of emerging technologies that are shaping the world.

Technology Explained

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chiplet: Chiplets are a new type of technology that is revolutionizing the computer industry. They are small, modular components that can be used to build powerful computing systems. Chiplets are designed to be used in combination with other components, such as processors, memory, and storage, to create a complete system. This allows for more efficient and cost-effective production of computers, as well as more powerful and versatile systems. Chiplets can be used to create powerful gaming PCs, high-end workstations, and even supercomputers. They are also being used in the development of artificial intelligence and machine learning applications. Chiplets are an exciting new technology that is changing the way we build and use computers.

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).