he European Commission has granted Open EU Foundry (OEF) status to Silicon Box’s semiconductor facility in Novara, Italy, under the European Chips Act, in a move designed to reinforce Europe’s industrial capacity in one of the world’s most strategic technologies. The decision highlights Brussels’ determination to reduce external dependence in semiconductors and build a stronger domestic ecosystem for the digital economy.

According to the Commission, OEF status gives the project several advantages, including administrative support, faster approval procedures, and priority access to pilot lines under the Chips for Europe Initiative. These benefits are intended to accelerate industrial deployment while ensuring that part of the facility’s capacity remains available to external customers, helping improve the resilience and flexibility of Europe’s semiconductor supply chain.

Silicon Box’s Novara plant will focus on advanced semiconductor packaging and testing, a fast-growing segment of the chip industry that is becoming increasingly important as chip design grows more complex. The facility will use panel-level packaging, a technology that allows multiple chiplets — small modular semiconductor components with distinct functions — to be integrated into a single package that behaves like one chip. The Commission says this approach can increase output, lower costs and improve efficiency compared with more traditional packaging methods. The plant is expected to reach full capacity by 2033.

The strategic relevance of this kind of investment goes well beyond manufacturing. Advanced packaging is increasingly seen as a critical enabler for sectors such as artificial intelligence, electric and autonomous vehicles, data centres and supercomputing. As geopolitical tensions and supply-chain vulnerabilities continue to reshape the global semiconductor market, Europe is trying to secure a stronger position not only in chip design and fabrication, but also in the high-value downstream stages that determine performance, power efficiency and scalability.

The move is part of a much broader industrial policy effort. The European Chips Act, which entered into force in September 2023, aims to strengthen research, manufacturing, packaging, skills and crisis response across the semiconductor value chain. One of its headline goals is to help Europe double its global semiconductor market share to 20% by 2030. The Commission says it has already approved multiple semiconductor projects across the EU representing more than €31.5 billion in combined public and private investment, with Silicon Box among the flagship projects under this strategy.

The recognition of Silicon Box follows earlier OEF or Integrated Production Facility designations awarded to other semiconductor projects in Europe, underlining how the EU is building a more coordinated industrial base across different member states. In practical terms, the Novara facility adds a crucial piece to Europe’s semiconductor puzzle: not just more chip capacity, but more capability in one of the industry’s most sophisticated and strategically valuable segments.