The Vulcan Project, by Singapore-based Silicon Box, will invest €3.2bn into Novara, Italy, to produce a new semiconductor facility.
The new facility will by the first advanced packaging and semiconductor testing facility in Europe, marking a big step forward for European microchips.
A further €1.3bn is being contributed to the project by public intervention under the European Chips Act.
Creating jobs and hitting EU goals
It is expected that the Vulcan Project will create around 1,600 jobs as it advances European technological sovereignty. Construction of the new facility, in Novara, Italy, is expected to begin in early 2027.
This represents a milestone for both Italy’s national and European industrial strategies, which are seeking to double Europe’s global market share in the microchip industry by 2030.
Silicon Box will bring their unique large-format panel process to Europe, allowing for the integration of multiple chiplets into a single package, serving markets in artificial intelligence, supercomputing, electric mobility, and aerospace.
Dr Byung Joon Han, co-founder and CEO of Silicon Box, said: “Novara will be our home in Europe and we are proud that our first international expansion will be here and complete the entire chip production cycle in Europe.”
The project has received Open EU Foundry designation from the European Commission under the Chips Act.
Novara was chosen due to its strategic location between Milan, Turin, and European transport corridors.
A “historic day”
Adolfo Urso, minister of enterprises and Made in Italy, said: “Historic day. With this investment, Italy is a candidate to become a reference center for emerging technologies.”
Alberto Cirio, president of the Piedmont Region, added: “Silicon Box is the largest investment of an Asian multinational in Italy. It is a project that changes the connotations of our economy because it puts us in a scenario of innovation and modernity.”
Earlier this month, an investment of €525m was made under the European Chip Design Platform to stimulate investment, creation, and expansion of the next generation of European chips and semiconductor design companies.
The project was launched under the EU Chips Act by Henna Virkkunen, the vice-president for tech, sovereignty, security and democracy.
At present, European chip design companies account for less than 1% of global revenues, due to a lack of demand for European designs.
Under this new investment, European chip design companies will have new access to design tools, support services, intellectual property blocks, and greater access to manufacturing capacity, in an effort to eventually boost production and stimulate the market.
Read more about the investment and its background here.
