Singapore-based semiconductor firm Silicon Box is planning to select the town of Novara in the industrialized northwest Piedmont region for its new multibillion-euro chip factory in Italy, according to two sources familiar with the matter who spoke to Reuters on Thursday.
The three-year-old startup, founded by the creators of U.S. chipmaker Marvell (MRVL.O), intends to invest 3.2 billion euros ($3.4 billion) to produce “chiplets” in Italy under a government-backed deal. These chiplets, which can be as small as a grain of sand, are combined through a process called advanced packaging, an efficient method for integrating small semiconductors into a single processor that can power devices ranging from data centers to household appliances.
This initiative is part of Italy’s ongoing efforts to attract investments from technology companies, following a previously shelved deal with U.S. chipmaker Intel (INTC.O).
In March, Silicon Box and Italy’s industry ministry announced the investment without specifying the plant’s location. The sources, who requested anonymity due to the confidential nature of the discussions, revealed that Silicon Box is inclined to choose Novara from a shortlist that includes two other sites in the northern regions of Lombardy and Veneto.
Both the industry ministry and Silicon Box declined to comment on the matter. One source indicated that Silicon Box and the industry ministry are expected to confirm the plant’s location on June 28.
Once fully operational, the investment is projected to create 1,600 direct jobs, along with numerous indirect jobs related to the construction of the facility and the broader supply and logistics ecosystem.
In March, Industry Minister Adolfo Urso stated that the project is anticipated to have around 4 billion euros in operational costs over 15 years. Italy has allocated nearly 5 billion euros in state aid to attract foreign chipmakers.
