Singapore’s Company Silicon Box To Invest 3.2 bn in Italy

Trade and Economics - March 17, 2024

Singapore’s Company Silicon Box, will invest 3.2 billion in Italy.

The technology company will build a semiconductor plant in the north of the country

The announcement of a €3.2 billion investment by Singapore-based semiconductor company Silicon Box to build a chip factory in northern Italy represents a significant turning point in the country’s technology landscape. This move not only promises to create a positive economic impact, but also strengthen Italy’s position in technological innovation on a global scale.

According to the Minister of Made in Italy, Adolfo Urso, this initiative is particularly timely considering the recent global upheavals that have highlighted the need to build more resilient supply chains for semiconductors in Europe. Silicon Box’s investment not only responds to this need, but also to the Italian government’s desire to position the country at the centre of strategic priorities in the chip and microelectronics sector. Silicon Box’s decision to invest in Italy is a recognition of the country’s ability to attract interest and investment from major global technology players. This investment will not only lead to the creation of 1,600 jobs when fully operational, but will also stimulate further investment and innovation in the sector. The chip factory, once operational, will contribute to demand for semiconductor assembly in Europe, supporting the adoption of new technologies in the areas of artificial intelligence, high-performance computing and electric vehicles.

Silicon Box CEO Byung Joon Han highlighted that Italy was the ideal choice for the company’s global expansion, highlighting the importance of shared cultural values that embrace curiosity, passion and commitment to excellence. This investment aligns with the European Union’s goals to recover 20% of global semiconductor manufacturing capacity by 2030, helping to create a more resilient and geographically balanced global chip supply chain. While the exact location of the new Silicon Box factory has not yet been finalized, it is clear that northern Italy has been identified as a possible location. However, the final decision will be made based on a number of factors, including context, infrastructure and the presence of research institutes and universities. The company plans to start the investment in the coming months, with the aim of starting work within the year.

This announcement comes at a time when both Europe and the United States are looking to bolster local chip manufacturing to reduce dependence on Asian facilities and mitigate the risk of supply shortages. For example, Intel has announced plans to build a test and assembly site in Poland, as well as significant investments in a new chip factory in Germany. Silicon Box’s investment in Italy represents an important step towards strengthening the country’s technology industry and consolidating its position in the global semiconductor market. This investment not only promises to create job opportunities and spur innovation, but also contribute to the creation of a more resilient and sustainable global chip supply chain.

The importance of a similar structure for the Italian state is evident and will be fundamental for industrial development in the technological sector which has always been the flagship of the Bel Paese. Such investments will also help strengthen commercial relations with foreign powers capable of enriching Italian know-how and which could prove strategically essential in emergency situations such as those recorded, for example, during the period of the global pandemic or shortly thereafter. Italy proves, once again, ready to increase its technological potential on the European and global scene.Italy will be ready to face the technological transition expected for the next decades, with investments and precious collaborations with companies from all over the world.In times of strong geopolitical instability, certain moves could save entire nations from economic and financial collapse.