Italy woos Intel over multibillion-euro chip plant

According to three sources, Rome is preparing an offer to persuade Intel (INTC.O) to invest billions of euros in an advanced chipmaking plant in Italy, as Germany emerges as the favorite to snag an even larger mega factory planned by the US corporation.

The plants would be part of a push by the American conglomerate to establish cutting-edge manufacturing capacity in Europe in order to avoid future supply shortages like the ones that are currently plaguing the automobile industry.

According to sources familiar with the conversations, Rome is already in talks with Intel about the potential investment, which is estimated to be worth more than 4 billion euros ($4.7 billion).

Depending on Intel’s intentions, the cost could potentially reach about 8 billion euros, according to one of them.

They did not want to be recognized because the circumstances are private.

According to the sources, Rome is willing to pay a portion of the overall investment with public funds and provide Intel with favorable terms, especially on labor and energy expenses.