December 20, 2024 /SemiMedia/ — The European Commission has recently approved a €1.3 billion subsidy under EU state aid rules to support Singapore-based startup Silicon Box in building an advanced semiconductor packaging and testing facility in Novara, Italy.

The facility will adopt panel-level packaging and 3D integration technologies, enabling multiple small chips to be combined into higher-performance, energy-efficient multi-chip modules. The new plant will handle chip assembly, packaging, and testing, with full operations expected by 2033, processing approximately 10,000 panels per week.

The subsidy forms part of Silicon Box's €3.2 billion investment plan. In return, the company has committed to contributing to the EU's advanced packaging technology development and prioritizing orders under the European Chips Act during supply shortages. Silicon Box also plans to implement education and skill training programs to bolster a qualified workforce.

This plant will be the first in Europe to provide panel-level advanced packaging solutions. Silicon Box aims to enhance the flexibility of the global semiconductor supply chain and boost chip manufacturing capacity worldwide through this project.

Earlier this year, Silicon Box announced its plans to complete the Italian investment in 2024. The project's operating costs are estimated to exceed €4 billion over the first 15 years. In early 2024, the company secured $200 million in funding, reaching a valuation of over $1 billion.