ROME (Reuters – Italy will set aside over 4 billion Euros ($4.5 billion) by 2030 in order to support innovation and boost chip production, according to a draft decree that Reuters saw on Tuesday.

As the government attempts to convince Intel (NASDAQ) to spend billions on an advanced Italian chipmaking plant that employs innovative technology to create full-chips, this move is necessary.

Rome will offer Intel public funds and other favorable terms in order to finance a part of the total investment. The overall investment is anticipated to reach around 8 billion euro ($9 billion), Reuters reported December.

Italy has also been in discussions with French-Italian STMicroelectronics and Taiwanese-controlled MEMC Electronic Materials Inc to boost its domestic chipmaking. Tower Semiconductor Intel is expected to buy (NASDAQ:)

According to the decree, 150 million euros will be allocated in 2022 to the government to help support the economy, and to reduce the rising cost of energy, and 500 millions euros annually from 2023 to 2030.

According to the decree, government officials will encourage “research and technology development for microprocessor technology” and investment in new applications of these technologies.

The legislation also stated that Rome would use the funds to transform existing industrial properties and encourage the construction of new Italian plants.

After the explosive consumer electronics demand that arose from the COVID-19 pandemic, chipmakers have been scrambling for ways to increase their output.

Following recent supply chain difficulties, EU countries which rely heavily upon industries like automobile manufacturing are determined to lessen their dependence on American semiconductor supplies.