The European Commission has approved a significant funding initiative of €1.3 billion aimed at establishing a state-of-the-art semiconductor advanced packaging and testing facility in Novara, Italy. This initiative, led by Silicon Box, is a crucial part of Europe’s strategy to bolster its semiconductor production capabilities. The funding aligns with the European Chips Act and the Commission's 2024-2029 Political Guidelines, focusing on enhancing technological autonomy and security of supply in this essential sector.

This approval follows a substantial €5 billion investment by the EU to support a semiconductor manufacturing plant in Dresden, Germany. Teresa Ribera, the Executive Vice-President for Clean, Just and Competitive Transition, noted that this new initiative will provide a first-of-its-kind facility for advanced chip packaging. It aims to ensure that key industries such as telecommunications, automotive, and consumer electronics have access to reliable and energy-efficient semiconductor solutions.
The growing importance of semiconductors in modern technology underscores the need for Europe to boost its production capacity in light of recent global supply chain disruptions. The European Chips Act, implemented in 2023, serves as a legislative framework addressing these challenges by promoting infrastructure investments and supporting technological innovation. The approval of Silicon Box’s project marks the fifth major initiative under this act, underlining the EU's commitment to strengthening its semiconductor ecosystem.
The Novara facility will focus on advanced packaging techniques, integrating multiple chips or "chiplets" into a single package to enhance performance and efficiency. This approach differs from traditional wafer-level packaging by utilizing panel-level packaging combined with innovative 3D integration methods. Once operational, the facility is expected to process around 10,000 panels weekly, aiming for full capacity by 2033.
In addition to semiconductor assembly and comprehensive testing, the project seeks to improve Europe’s manufacturing capabilities and Foster innovation in next-generation technologies. The establishment of this facility is expected to yield significant benefits for the EU’s semiconductor industry while promoting collaboration across various sectors.
Silicon Box has committed to advancing cutting-edge packaging technologies, positioning the EU as a leader in the semiconductor market. The initiative also addresses vulnerabilities in the supply chain by prioritizing critical orders during shortages in line with the European Chips Act mandates. Furthermore, the project will contribute to workforce development through training programs aimed at cultivating a skilled talent pool for the semiconductor industry.
By investing in this advanced packaging facility, the European Union aims to reduce its dependency on external suppliers and enhance innovation and economic growth. The Novara facility is set to play a pivotal role in Europe’s semiconductor strategy, promoting the development of advanced technologies and strengthening supply chain resilience. As the EU continues to fortify its position in this vital sector, it lays the groundwork for long-term competitiveness and leadership in an increasingly dynamic global landscape.