Silicon Box Unveils $3.6B Foundry Deal, Northern Italy Chosen for New Facility

Silicon Box, a leading panel-level packaging Foundry, has announced its plans to invest up to $3.6 billion in Northern Italy to establish 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 and facilitate the development of next-generation technologies by 2028. The new facility will be modeled after Silicon Box’s successful foundry in Singapore, which specializes in advanced semiconductor packaging solutions, including 3D integration and testing. The project is expected to create around 1,600 jobs in Italy, with additional employment opportunities in the supply chain. Construction will begin pending approval from the European Commission for the planned financial support from the Italian State.

Silicon Box’s manufacturing process is based on panel-level production, a groundbreaking approach that combines chiplet integration, packaging, and testing. This unique method, already being utilized at their Singapore foundry, enables them to deliver cutting-edge products to customers. Through this investment, Silicon Box aims to drive innovation and expansion not only in Europe but also globally. The establishment of the new facility is expected to stimulate further investments and foster innovation within Italy and the European Union.

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 commitment to excellence. The company has already witnessed promising collaborations with the Italian government and various stakeholders, which will be crucial for the successful execution of this pioneering project in Europe.

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

The new facility will act as a catalyst for broader ecosystem investments and innovation in Italy and the rest of Europe. Dr. Han emphasized that Italy’s strong talent base, infrastructure, and supportive business environment were key factors in selecting the country for expansion. The facility will create competitive job opportunities, including roles for engineers, equipment technicians, factory operators, and business functions. Italy’s exceptional higher education ecosystem, with a strong focus on engineering disciplines, played a decisive role in Silicon Box’s decision to establish its facility in Northern Italy.

Wafer fabrication facilities, also known as “fabs,” play a crucial role in chip manufacturing. They produce chips on silicon wafers through advanced processes. Packaging facilities, like the one planned by Silicon Box in Italy, receive completed wafers from fabs, cut them into individual chips, assemble them into final products, and test them for performance and quality. The packaged chips are then delivered to customers, including chip design companies and original equipment manufacturers.

Silicon Box’s facilities specialize in advanced chiplet integration capabilities, which involve manufacturing individual system modalities as standalone chips or chiplets on a wafer. These separate functionalities are then integrated into a system through advanced packaging, resulting in a system-in-package (SiP). This innovative approach to semiconductor manufacturing represents a paradigm shift for the industry.

The chiplet concept was introduced by Dr. Sutardja at the International Solid State Circuits Conference (ISSCC) in 2015. Dr. Han, on the other hand, is responsible for inventing semiconductor packaging solutions that enable chiplets through advanced packaging. Their collaboration has propelled Silicon Box’s success in the semiconductor manufacturing space, traditionally dominated by a few large companies.

Silicon Box’s investment in Italy is expected to have a significant impact on the European semiconductor ecosystem. It will strengthen Europe’s semiconductor supply chain by fostering collaboration between design and manufacturing, increasing resilience, and improving cost efficiency. The company aims to support the European Commission’s goal of reclaiming 20 percent of global semiconductor manufacturing capacity by 2030.

The company’s commitment to sustainability is reflected in its manufacturing practices and adherence to high environmental standards. The new facility in Northern Italy will be constructed and managed according to Europe’s net-zero principles, minimizing its carbon footprint and environmental impact.

Silicon Box’s investment in Italy has the potential to attract further investments from ecosystem companies and promote the development of a thriving European semiconductor industry. It will enable existing Italian and European semiconductor interests to leverage their core competencies and drive efficiency and innovation through the deployment of advanced packaging and chiplet architecture. This is particularly significant for the development of native artificial intelligence, large language models, supercomputers, mobile technology, wearables, smart factories, and edge computing companies.

The new Silicon Box facility in Italy will showcase the company’s technology end-to-end, from design and construction to full process automation. It will serve as an AI-powered smart factory, offering seamless expansion, immersive employee and customer experiences, and groundbreaking management and performance monitoring efficiencies.

Recent global disruptions have highlighted the need for a more resilient semiconductor supply chain in Europe. Silicon Box aims to contribute to the realization of a geographically balanced and resilient global semiconductor supply chain. The company’s track record of fast project execution, demonstrated by the successful establishment of its Singapore foundry within a year, will also apply to the Italian facility.

Silicon Box is committed to driving innovation and shaping the world through its advanced semiconductor packaging solutions. With 30 years of expertise and strong partnerships, the company strives to overcome the unique challenges of chiplet adoption and contribute to the development of emerging technologies.

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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chiplets: Chiplets are a new type of technology that is revolutionizing the computer industry. They are small, modular components that can be used to build a variety of computer systems. Chiplets are designed to be highly efficient and cost-effective, allowing for the creation of powerful and complex systems without the need for large, expensive components. They are also highly customizable, allowing for the creation of systems tailored to specific needs. Chiplets are being used in a variety of applications, from high-end gaming PCs to embedded systems and even supercomputers. They are also being used to create powerful AI systems, allowing for the development of more advanced and intelligent machines. Chiplets are revolutionizing the computer industry, allowing for the creation of powerful and efficient systems at a fraction of the cost.

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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).