Italy plans to spend as much as €4 billion ($4.6bn) on domestic chip manufacturing by 2030.

The plan, seen in a draft decree by Reuters, is particularly targeted at US chipmaker Intel, which is seeking to build two chip fab campuses in Europe. One of those looks set to be in Magdeburg, Germany.

Intel is believed to have scouted out locations in the country, as part of a wider search.

Should it build in Italy, it expects to spend around €8bn ($9bn) over 10 years on the fab. The Italian government has already offered money and other favorable terms during negotiations that have been described as "very tough."

Italy would also make use of new funding from the European Commission under the recently passed European Chips Act - although this would also be available to competing offers from rival EU nations.

In addition to Intel, Italy is in discussions with French-Italian STMicroelectronics, Taiwanese MEMC Electronic Materials Inc, and Israeli Tower Semiconductor. The latter business is in the midst of being acquired by Intel for $5.4bn.