TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) will receive a U.S. federal grant of NT$211 billion (US$6.6 billion) for further investment in the U.S. and up to NT$160 billion (US$5 billion) in loans, per a TSMC press release on Monday (April 8).

The grant is the second largest under the CHIPS and Science Act, with Intel projects receiving US$8.5 billion in grants and US$11 billion in loans, per Nikkei Asia.

“The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chair Mark Liu (劉德音). “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies,” he added.

U.S. Secretary of Commerce Gina Raimondo said in a press conference, “For the first time, we will be making, at scale, the most advanced semiconductor chips on the planet here in the United States of America,” per Nikkei Asia.

She added, “These are the chips that underpin all artificial intelligence, and they are the chips that are necessary components for the technologies that we need to underpin our economy, but frankly, a 21st-century military and national security apparatus,” per Reuters.

TSMC also confirmed that a third fab will be built in Arizona, which will bring its U.S. investment to US$65 billion. The third fab is expected to create about 6,000 jobs and tens of thousands of indirect supplier jobs, the company added.

The company said that its first Arizona fab will produce 4-nanometer chips and will start production in 2025. The second fab will produce the previously announced 3 nm chips in addition to 2 nm ones in 2028, while the third fab will produce 2 nm silicon or smaller at the end of the decade.

Founded in 1987, TSMC is the world’s largest chipmaker and is a major supplier to Apple, Amazon, and Nvidia.