FILE PHOTO: A Silicon Box signage is pictured during the opening of their advanced semiconductor manufacturing foundry in Singapore July 20, 2023. REUTERS/Edgar Su/File Photo
ROME (Reuters) - Singapore-based semiconductor firm Silicon Box has picked the town of Novara, in the industrialised northwestern region of Piedmont, for its new multi billion-euro chip factory in Italy, the industry ministry said on Friday.
The three-year-old startup, created by the founders of U.S chipmaker Marvell, will invest 3.2 billion euros ($3.42 billion) to produce in Italy so-called "chiplets", which can be the size of a grain of sand, under a government-backed deal.
Chiplets are brought together in a process called advanced packaging, a cost-efficient way to bind small semiconductors to form one processor that can power everything from data centres to household appliances.
"Silicon Box offers Piedmont the opportunity to become a semiconductor hub," Industry Minister Adolfo Urso told reporters.
The project is part of long-standing Italian efforts to attract investment from technology companies, including a shelved deal with U.S. chipmaker Intel.
At full capacity, the investment is expected to create 1,600 new jobs, in addition to the indirect jobs generated both for the construction of the facility and in the wider supply and logistics ecosystem involved.
($1 = 0.9352 euros)
(Reporting by Giuseppe Fonte, editing by Giulia Segreti and Tomasz Janowski)
