Rome: The Italian government is looking to support the semiconductor industry with up to €10bn according to reports.

“Italy is preparing to become one of the largest microelectronics producers in Europe,” Industry Minister Adolfo Urso told reporters in Pescara over the weekend. This follows a €3.2bn deal with Silicon Box to build a chiplet packaging plant in the north of Italy.

“I believe that in the coming weeks we will be in a position to make other equally significant announcements,” said Urso.

The Silicon Box deal will create approximately 1,600 semiconductor jobs by 2028. 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.

The Italian government had previously failed to persuade Intel to set up around Verona.

“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,” said Dr. Byung Joon (BJ) Han, co-founder and CEO of Silicon Box last month.

“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 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.”