ROME, March 11 (Reuters) - Singapore-based semiconductor

firm Silicon Box will invest 3.2 billion euros ($3.50 billion)

in a new plant in northern Italy under a government-backed deal,

the country's industry ministry said on Monday.

The project is part of long-standing Italian efforts to

attract investment from technology companies, which have also

included a never-finalised deal with U.S. firm Intel ( INTC ).

"At full capacity, the investment will be able to generate

1,600 new direct jobs, in addition to the indirect jobs

generated both for the construction of the facility and in the

wider supply and logistics ecosystem involved when fully

operational," the statement said.

Industry Minister Adolfo Urso said the project had around 4

billion euros in expected operational costs spread over 15

years.

It remains to be seen where exactly in the north of Italy

the plant will be based, as there are several sites across that

area up for grabs.

The almost three-year-old startup, created by the founders

of U.S chipmaker Marvell ( MRVL ), focuses on so-called

'chiplets', which can be the size of a grain of sand.

These are brought together in a process called advanced

packaging, a cost-efficient way to bind small semiconductors to

form one processor that can power everything from data centres

to household appliances.

($1 = 0.9146 euros)