According to the Wall Street Journal Chipzilla has so far only talked about expanding its presence across the United States with a planned $100-billion spending spree across four states, to boost its manufacturing business and catch up with chipmaking rival TSMC.

However, Chipzilla announced plans in 2022 to build chip factories in Ireland and France as it seeks to benefit from easier European Commission funding rules and subsidies.

Intel and Apollo are in exclusive talks for the deal, which could be signed in the coming weeks, the report said, citing people familiar with the matter.

Other investment firms including KKR and infrastructure investor Stonepeak were also in the running before Apollo recently pulled ahead, the report added.

Intel forecast second-quarter revenue and profit below market estimates last month as it faces weak demand for its traditional data centre and personal computing chips, amid a surging market for AI components.