Silicon Box to invest €3.2 billion in Italian chip plant

Italy has approved a financing framework for Silicon Box to establish a major semiconductor manufacturing facility in Novara. Known as the Vulcan Project, the initiative involves a total investment of €3.2 billion (approximately $3.7 billion).

The Italian government is providing €1.3 billion in public support through a semiconductor sector fund established under the European Chips Act. This facility will be Silicon Box’s first European manufacturing site, focusing on back-end production stages such as chiplet integration, advanced packaging, and testing. The project is expected to create approximately 1,600 direct jobs at full capacity.

Regional officials in Piedmont intend to position the area as a center of excellence for semiconductors. The investment aims to reduce Europe’s reliance on foreign technology, as the EU currently accounts for less than 10% of global chip production. The project is viewed as a strategic move to strengthen the European semiconductor supply chain and enhance regional industrial stability.