EU greenlights US$1.35B semiconductor packaging facility in Italy

ITALY – The European Commission has given the green light to a €1.3 billion (US$1.35bn) funding initiative to support the development of an advanced semiconductor packaging and testing facility in Novara, Italy.

Led by Silicon Box, this project is part of the EU’s broader strategy to bolster Europe’s semiconductor production capabilities.

The move aligns with the European Chips Act and the EU’s 2024-2029 Political Guidelines, aiming to enhance supply chain security and establish technological autonomy in a critical sector.

It follows another major €5 billion (US$5.20bn) EU investment in a semiconductor manufacturing plant in Dresden, Germany, underscoring the region’s commitment to strengthening its semiconductor ecosystem.

Semiconductors are foundational to modern technology, powering devices ranging from smartphones to advanced automotive systems.

Recent global supply chain disruptions have highlighted Europe’s dependence on external suppliers and highlighted the urgent need to boost domestic production.

Introduced in 2022 and enacted in 2023, the European Chips Act provides a framework to support investments in semiconductor infrastructure, safeguard supply chain resilience, and promote technological innovation.

The Silicon Box project is the fifth major initiative under this Act, reflecting the EU’s resolve to achieve semiconductor sovereignty.

Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, remarked, “The €1.3 billion Italian measure approved today supports a first-of-its-kind facility for advanced chip packaging. It ensures access to reliable, energy-efficient chips for critical industries while supporting digital and green transitions and creating high-skilled jobs.”

Inside the Novara facility

The EU’s funding complements Silicon Box’s €3.2 billion (US$3.33bn) investment in the Novara facility, which will focus on cutting-edge semiconductor packaging techniques.

The facility will integrate advanced processes, including panel-level packaging and 3D integration, to produce efficient multi-chip modules.

Unlike traditional wafer-level packaging, the innovative methods employed will enable the production of approximately 10,000 panels per week once fully operational by 2033.

The plant will perform key stages such as chip assembly, packaging, and testing, significantly enhancing Europe’s semiconductor manufacturing capabilities.

This advanced facility will deliver several significant benefits, strengthening Europe’s semiconductor ecosystem.

The project will foster collaboration and growth across the region by offering state-of-the-art packaging solutions.

It will enhance the semiconductor value chain, creating opportunities for partnerships and innovation that will benefit industries reliant on high-performance chips.

Silicon Box’s commitment to advancing packaging technologies further positions the EU as a global leader in the semiconductor domain.

By employing cutting-edge methods such as panel-level packaging and 3D integration, the facility will push the boundaries of what is possible in chip performance and energy efficiency, reinforcing Europe’s role as a hub for technological excellence.

The project will also contribute to workforce development, ensuring a sustainable talent pipeline to support the sector’s growth.

Comprehensive training and education programs will equip professionals with the skills to operate and innovate in this advanced industry.

This investment in human capital will be critical to maintaining Europe’s competitive edge in the global semiconductor market.

Additionally, the facility will prioritize critical orders during supply shortages, reinforcing the EU’s supply chain resilience as mandated by the Chips Act.

The Novara facility represents a landmark in Europe’s semiconductor strategy. It reduces dependency on external suppliers and drives innovation in next-generation technologies.

By supporting projects like this, the EU solidifies its position as a semiconductor global leader, ensures long-term competitiveness, and fosters economic growth in a rapidly evolving industry.

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