Singapore's Silicon Box invests $3.5B in new Italian chip plant

12 Mar, 2024

Singapore's Silicon Box invests $3.5B in new Italian chip plant

SEMICONDUCTORS startup Silicon Box is set to inject US$3.5 billion into Italy, erecting a chip factory in the nation's northern region, announced Industry Minister Adolfo Urso on Monday (Mar 11). Urso emphasized the importance of fortifying Europe's semiconductor supply chain in light of recent global disruptions, foreseeing the creation of 1,600 jobs upon full plant operation.

Projected operational expenses for the chiplet production facility stand at around 4 billion euros (S$5.82 billion) over a 15-year span, with the exact location within northern Italy yet to be disclosed. This initiative emerges subsequent to unsuccessful negotiations with Intel Corp, prompting Italy to secure investments from Silicon Box, a Singapore-based entity recently valued at over US$1 billion after a US$200 million financing round in January.

Europe and the US are pivoting towards domestic chip production to mitigate reliance on Asian suppliers and prevent supply chain vulnerabilities. Intel's recent investments in Poland and Germany signal a broader trend toward bolstering semiconductor output. Silicon Box's specialization in chiplet technology, favored for its flexibility and efficiency, aligns with this strategic shift, aiming to address production bottlenecks and expand capabilities. With a burgeoning facility in Tampines, the company is poised for further growth with the infusion of new funds.