Rome is drawing up an offer to try to convince Intel to invest billions of euros in an advanced chipmaking plant in Italy, as Germany emerges as frontrunner to land an even bigger megafactory planned by the U.S. company, three sources said.

The plants would be part of a drive by the U.S. group to build cutting-edge manufacturing capacity in Europe to help avoid future supply shortages of the kind currently crippling the automotive industry in particular.

Rome is already in talks with Intel about the potential investment, which according to preliminary estimates would be worth more than 4 billion euro ($4.7 billion), the sources who are involved in the discussions said.