Silicon Box’s new semiconductor packaging facility in Italy will be supported with EUR 1.3 billion

Today, the European Commission (Commission) has approved a EUR 1.3 billion aid to support Silicon Box in constructing an advanced semiconductor packaging and testing facility in Novara (Italy). This initiative aligns with the objectives of the European Chips Act and the European Commission’s 2024-2029 Political Guidelines, aiming to bolster Europe’s technological autonomy, supply chain resilience, and security in the semiconductor sector.

The facility will employ innovative panel-level packaging and 3D integration technologies, enabling the assembly, packaging, and testing of approximately 10,000 panels weekly by 2033. This “first-of-a-kind” plant in Europe will enhance the region’s capacity to produce advanced packaging solutions and address the EU’s dependency on external providers. Italy’s EUR 1.3 billion grant shall also drive the development of next-generation packaging technologies, and contribute to the semiconductor value chain.

The Commission assessed the measure under Article 107(3)(c) TFEU and state aid rules, confirming its necessity, proportionality, and limited impact on competition. Silicon Box committed to sharing excess profits with Italy, prioritizing European supply needs during crises under the EU Chips Act, and applying for Open EU Foundry recognition.

The non-confidential version of the decision will be made available under the case number SA.113264 in the state aid register.

For more information, see the PR.