Singapore-based semiconductor company Silicon Box plans to invest $3.6bn to build a manufacturing facility in Northern Italy.

The company, which has been around for three years, specialises in advanced chiplet integration and is currently operating a factory in Singapore that began shipping finished products last month.

It also aims to produce chiplets in Italy, which can be the size of a grain of sand. By using advanced packaging, small semiconductors are connected together in a cost-effective way to create a processor that can run everything from data centres to household appliances.

The exact location of the site is yet to be decided. The design and planning are already underway, however, approval from the European Commission is necessary for subsidies to be granted, which the Italian industry ministry said it expected to receive soon.

Silicon Box CEO Dr Byung Joon Han said: “The location is well suited to work with Europe’s existing and planned semiconductor wafer fabrication clusters in Italy, Germany, and France, Proximity will enable close collaboration from design through to final manufacturing, and help increase resilience and cost efficiency of the European and global semiconductor supply chain, at a time when there is a global shortage for this type of technology.”

The project is part of an ongoing effort in Italy to attract investment from technology companies, which has also included a never-finalised deal with US firm Intel.

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