Silicon Box cutting-edge, advanced panel-level packaging foundry announces $3.6B investment for expansion into Italy

Rhea-AI Summary

Silicon Box plans to invest up to $3.6B in Northern Italy to establish a cutting-edge semiconductor assembly and test facility, creating 1,600 jobs. The facility will focus on end-to-end chiplet integration for next-gen technologies and align with European sustainability goals.

Insights

Market Research Analyst

The announcement of Silicon Box's investment in Northern Italy signifies a strategic move to enhance the semiconductor supply chain within Europe, potentially influencing the market dynamics of the semiconductor industry. The substantial investment of up to $3.6 billion is poised to create a ripple effect, not only by generating approximately 1,600 direct jobs but also by potentially boosting the local economy through thousands of indirect jobs linked to supplier and construction activities. This expansion aligns with the European Union's goal of increasing resilience in semiconductor manufacturing, which has faced global shortages and geopolitical tensions.

From a market research perspective, this investment could strengthen Europe's competitive position in the global semiconductor market, which has been historically dominated by Asia and the US. The focus on advanced packaging and chiplet technology is particularly noteworthy, as it represents a shift from traditional system-on-chip (SoC) designs towards a modular approach that can offer greater flexibility and scalability. This could lead to enhanced performance for applications in AI, HPC and EVs, sectors that are experiencing significant growth. The emphasis on sustainability and adherence to green building principles may also resonate with environmentally conscious stakeholders and consumers, potentially improving Silicon Box's brand reputation and market share.

However, it is important to monitor how this investment will affect the existing supply chain dynamics, including the response from established semiconductor powerhouses and potential shifts in trade patterns. The long-term success of this venture will depend on the efficient integration of the new facility into the global semiconductor ecosystem and the ability to maintain a competitive edge in technological innovation.

Environmental Sustainability Expert

The commitment to environmental sustainability is a critical aspect of Silicon Box's investment in Northern Italy. Constructing the facility in accordance with green building principles and operating under high environmental standards addresses growing concerns about the carbon footprint of the manufacturing industry. The advanced packaging solutions offered by Silicon Box, which promise better thermal and electrical performance, align with the increasing demand for sustainable technologies.

Implementing such standards can not only reduce operational costs through energy savings but also attract investors and customers who prioritize corporate responsibility. Moreover, the adherence to Europe's net zero principles could set a precedent for future industrial projects within the EU, potentially influencing legislation and environmental policies. The promise of minimizing environmental impact through the facility's design and operation reflects an industry shift toward more sustainable practices, which can be a significant differentiator in a competitive market.

While the environmental benefits are clear, it will be essential to evaluate the actual implementation of these principles and the measurable outcomes once the facility is operational. Transparent reporting on environmental performance indicators will be key to validating Silicon Box's claims and ensuring accountability.

Economist

The economic implications of Silicon Box's investment are multifaceted. The creation of 1,600 semiconductor jobs, along with the ancillary employment opportunities, is expected to inject significant economic activity into the region. This can stimulate local economies and contribute to the diversification of the job market, particularly in high-tech sectors. Additionally, the focus on advanced semiconductor technologies such as AI, HPC and EV-related applications positions Italy as a potential hub for cutting-edge research and development in Europe.

The investment may also attract further foreign direct investment (FDI) into Italy and the broader European Union, as Silicon Box's presence could encourage other companies to establish or expand their operations in the vicinity, creating a cluster effect. This clustering could enhance innovation, facilitate knowledge transfer and improve the overall competitiveness of the European semiconductor industry.

In the long term, the strategic importance of semiconductor independence for Europe cannot be overstated, especially in light of recent global supply chain disruptions. By bolstering domestic production capabilities, the EU can reduce its reliance on external sources and mitigate the risks associated with geopolitical uncertainties. However, the effectiveness of this investment in achieving these broader economic goals will hinge on successful collaboration with local governments, educational institutions and industry stakeholders.

Investment in Northern Italy (Nord Italia), will bring first-of-its-kind, end-to-end chiplet based semiconductor system integration to Europe

• Investment of up to $3.6B (€3.2B) will create approximately 1,600 semiconductor jobs at Silicon Box's new manufacturing facility, and create thousands of indirect supplier and contract construction jobs
• New Italian facility will enable next generation applications in artificial intelligence (AI), high performance computing (HPC), large language models (LLM), electric vehicles (EV) and automotive, wearables, mobile, smart consumer, edge computing and more by providing advanced packaging and test capacity, anticipated to be in demand in the coming years
• Facilities will be constructed according to green building principles and will operate with high environmental standards to minimize carbon footprint and environmental impact. Silicon Box's solutions allow greater sustainability through better thermal and electrical performance
• Silicon Box's investment will align with the Italian government and the European Commission and Union's goal of a more resilient semiconductor supply chain and to drive innovation

ROME, March 12, 2024 /PRNewswire/ -- Silicon Box cutting-edge, advanced panel-level packaging foundry announced its intention to collaborate with the Italian government to invest up to $3.6B (€3.2B) in Northern Italy, as the site of a new, state-of-the-art semiconductor assembly and test facility. This facility will help meet critical demand for advanced packaging capacity to enable next generation technologies that Silicon Box anticipates by 2028. The multi-year investment will replicate Silicon Box's flagship foundry in Singapore which has proven capability and capacity for the world's most advanced semiconductor packaging solutions, then expand further into 3D integration and testing. When completed, the new facility will support approximately 1,600 Silicon Box employees in Italy. The construction of the facility is also expected to create several thousand more jobs, including eventual hiring by suppliers. Design and planning for the facility will begin immediately, with construction to commence pending European Commission approval of planned financial support by the Italian State.

As well as bringing the most advanced chiplet integration, packaging, and testing to Italy, Silicon Box's manufacturing process is based on panel-level-production; a world leading, first-of-its-kind combination that is already shipping product to customers from its Singapore foundry. Through the investment, Silicon Box has plans for greater innovation and expansion in Europe, and globally.  The new integrated production facility is expected to serve as a catalyst for broader ecosystem investments and innovation in Italy, as well as the rest of the European Union.

"We believe innovation is driven by cultural values that embrace curiosity, passion, and a tireless commitment to excellence," said Dr. Byung Joon (BJ) Han, co-founder and CEO of Silicon Box. "Italy was one of our top choices for global expansion because we found that its culture shares our values. We have seen great promise through our collaborations with the Italian government and various regional, institutional and commercial stakeholders to date, which we know will be necessary to successfully execute this first-of-a-kind project in Europe."

"We are excited to bring Italy to the forefront of chiplet deployment and the semiconductor industry, through this investment into the world's most advanced packaging solution. It will enhance competitive strengths in design, artificial intelligence (AI), large language models (LLMs), electronic vehicles (EVs) and automotive, mobile, wearables, smart consumer, edge computing, and material sciences of the Italian ecosystem, and revolutionize Europe's position in the global [semiconductors] supply chain," said Dr. Sehat Sutardja, co-founder and Chairman of Silicon Box. "Throughout my career, I have always been a big believer in Italian and European ingenuity."

Advanced Packaging to Drive Innovation across Italian and European Semiconductor Ecosystems 

"Italy was chosen as the location for Silicon Box's first global expansion for several reasons, including its infrastructure, strong talent base and the government's initiative to support and streamline the business environment and key stakeholder conversations," said Dr. Han. "The competitive jobs that Silicon Box's new facility will create will include engineers, equipment technicians, factory operators, and business functions. Italy offers an exceptional ecosystem for higher education with strong traditions in various engineering disciplines. This was a decisive factor in Silicon Box's choice to build in Northern Italy and will be essential to our long-term success."

Wafer fabrication facilities, often referred to as "fabs", create chips on silicon wafers through various advanced processes. Packaging facilities, such as the one planned for Italy by Silicon Box, receive completed wafers from fabs, cut them into individual chips, assemble or "package" them into final products and test them for performance and quality. The finished or packaged chips are then shipped to customers which include specialty chip design companies, integrated device manufacturers (IDMs) and original equipment manufacturers (OEMs).

Notably, Silicon Box facilities specialize in advanced chiplet integration capabilities ("advanced packaging"), on a large manufacturing format for scale. The chiplet concept is an alternative to traditional semiconductor manufacturing, which focused on building entire systems-on-chips (SoCs) on silicon wafers, then moving to conventional packaging processes. Chiplets describe manufacture of individual system modalities as standalone chips or chiplets on a wafer, then integrating these separate functionalities into a system through advanced packaging, creating a system-in-package (SiPs). With this, advanced packaging technology comes to the forefront of semiconductor manufacturing innovation, in a new paradigm for the industry.

The chiplet concept itself was introduced by Silicon Box co-founder Dr. Sutardja at the International Solid State Circuits Conference (ISSCC) in 2015, where he was plenary speaker. Dr. Han is the inventor of semiconductor packaging solutions fundamental to enable chiplets through advanced packaging. Their collaboration has been the basis for Silicon Box's record-breaking progress as a company in the semiconductor manufacturing space, traditionally dominated by a few large companies. 

Bringing Resilience and Sustainability to the Semiconductor Supply Chain, and Enabling Advanced AI Technology and Ecosystems in Europe

"Silicon Box's new foundry in Italy will be able to accept wafers from all foundries and support a wide variety of customers, worldwide, through its innovative approach," said Mike Han, Silicon Box's Head of Business. "The location is well suited to work with Europe's existing and planned semiconductor wafer fabrication clusters in Italy, Germany, and France. Proximity will enable close collaboration from design through to final manufacturing, and help increase resilience and cost efficiency of the European and global semiconductor supply chain, at a time when there is a global shortage for this type of technology."

"Silicon Box's investment in Italy can act as a catalyst for further investments by ecosystem companies and for building and attracting the talent needed to support a thriving European semiconductor industry," co-founder Weili Dai said.  "It will also enable existing Italian and European semiconductor interests to maximize their existing core competencies and drive further efficiency and innovation through the creative and cost-efficient deployment of advanced packaging and chiplet architecture to support their own strategic objectives. This is particularly significant for the development of native artificial intelligence, large language models, supercomputers, mobile, wearables, smart factories, and edge computing companies." 

"This new Silicon Box AI-powered smart factory will be the first to showcase the ecosystem's technology end-to-end; from initial design and construction to full process automation, as well as employee and customer training from our comprehensive digital twin. This will facilitate seamless expansion, employee and customer immersion, and groundbreaking efficiencies in management and performance monitoring," she added.

Recent global disruptions emphasize the need to build a more resilient supply chain for semiconductors in Europe. Silicon Box supports the European Commission's goal to reclaim 20 percent of global semiconductor manufacturing capacity by 2030, and is committed to supporting a vision of a global semiconductor supply chain that is resilient and geographically balanced. 

Silicon Box built it's first advanced packaging facility in Singapore within a year, and began shipping finished products to customers three months after the factory's grand opening, showcasing unique capability for fast project execution, which will also apply to the Italian factory. 

Silicon Box's products and practices are committed to sustainability and will adhere to high environmental standards across its global operations.  This will also apply to Silicon Box's first global facility in Northern Italy. This facility will be constructed and managed according to Europe's net zero principles, minimizing its carbon footprint and the impact on the environment.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Such statements include: our manufacturing expansion and investment plans and expectations in the European Union (EU) and the anticipated benefits therefrom; anticipated supplier, ecosystem, community, and government support and approval for our planned EU investments and anticipated benefits related to such support; environmental plans for and benefits from our factories and technologies; and other characterizations of future plans, expectations, events, or circumstances.

Such statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including: changes in demand for our products; Silicon Box's failure to realize the anticipated benefits of its strategy, plans, and proposed transactions; construction delays or changes in plans due to business, economic, or other factors; increases in capital requirements and changes in capital investment plans; adverse changes in anticipated government incentives and associated approval related to Silicon Box's planned EU investments; adverse legislative or other government actions; insufficient ecosystem support; the impact of macroeconomic and geopolitical trends and events; and other risks and uncertainties described in this press release.

All information in this press release reflects management's views as of the date hereof, unless an earlier date is specified. We do not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Silicon Box

Silicon Box is an advanced semiconductor packaging company, specializing in cutting-edge integration technology and manufacturing processes. We offer solutions that enable chiplet architecture, as well as high performance alternatives to traditional packaging schemes.  Leveraging our proprietary technology, 30 years of multi-sectoral expertise, and relationships with best-in-class partners, we strive to solve the unique challenges of chiplet adoption in order to build the emergent technologies shaping the world around us today.

Silicon Box was founded in 2021 by Dr. Byung Joon (BJ) Han, Dr. Sehat Sutardja and Weili Dai.  Dr. Han was previously the Chairman, CEO and CTO of the world's 3^rd largest outsourced assembly and test provider, STATS Chippac (SSE: 600584) for two decades, taking the company to $4B in revenue during his tenure.  Dr. Han is the inventor of many of the most advanced packaging solutions in today's market, and his team at Silicon Box holds standing records for yield in advanced packaging technology at wafer level production.   Dr. Sutardja introduced the concept of chiplets at the International Solid-State Circuits Conference (ISSCC) in 2015.  He and Weili Dai founded Marvell Technology Group (NASDAQ: MRVL) in 1995, and ran the company for twenty years from a start-up to an over $50B market value company.

To learn more about Silicon Box go to: silicon-box.com/newsroom and silicon-box.com

Link to press kit: https://bit.ly/SB-presskit-ITA

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SOURCE Silicon Box

FAQ

What is the amount of investment Silicon Box plans to make in Northern Italy?

Silicon Box plans to invest up to $3.6B (€3.2B) in Northern Italy.

How many semiconductor jobs will the new facility create?

The new facility will create approximately 1,600 semiconductor jobs.

What are the focus areas for the new Italian facility?

The new facility will focus on advanced packaging and test capacity for AI, HPC, LLM, EVs, automotive, wearables, mobile, smart consumer, and edge computing applications.

What type of manufacturing process is Silicon Box's new facility based on?

Silicon Box's new manufacturing process is based on panel-level-production.

What are the sustainability principles that the new facility will adhere to?

The new facility will be constructed and managed according to green building principles and high environmental standards to minimize carbon footprint and environmental impact.