June 25, 2024 /SemiMedia/ -- According to Supply Chain, Singapore-based semiconductor company Silicon Box plans to build a new chip factory in Novara, in the industrialized Piedmont region of northwestern Italy.

Silicon Box, a three-year-old startup founded by the founder of U.S. chipmaker Marvell, will invest 3.2 billion euros ($3.4 billion) to produce chiplets, tiny chips as small as grains of sand, in Italy under a government-backed deal.

The chips are combined using advanced packaging, a cost-effective way to combine small semiconductors into a processor that powers everything from data centers to home appliances.

The project is part of Italy's long-running effort to attract investment from technology companies, which also includes a shelved deal with Intel.

Silicon Box and the Italian Ministry of Industry announced the investment in March, but did not disclose the exact location of the factory at the time.