The US Commerce Department has revealed initial terms with TSMC, awarding the chipmaker up to $6.6 billion in direct funding and another $5 billion in loans.

The CHIPS Act is one of the Biden administration’s hallmark pieces of legislation, aimed at revitalizing US-based semiconductor manufacturing. The need for domestic semiconductor manufacturing became painfully evident during the pandemic, when shortages and supply chain issues in China crippled numerous industries around the world.

TSMC is the world’s leading chipmaker and has been constructing factories in Arizona as part of its effort to bring advanced chip manufacturing to the US. The Taiwanese company is poised to receive up to $11.6 billion in directing funding and loans, according to the Commerce Department.

“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems. America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to close to 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities. I was determined to turn that around, and thanks to my CHIPS and Science Act – a key part of my Investing in America agenda – semiconductor manufacturing and jobs are making a comeback,” said President Joe Biden. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”

“One of the key goals of President Biden’s CHIPS and Science Act was to bring the most advanced chip manufacturing in the world to the U.S., and with this announcement and TSMC’s increased investment in their Arizona campus, we are working to achieve that goal,” said U.S. Secretary of Commerce Gina Raimondo. “The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing. Thanks to President Biden’s leadership and TSMC’s continued investments in U.S. semiconductor manufacturing, this proposed funding would help make our supply chains more secure and create thousands of good-quality construction and manufacturing jobs for Arizonans.”

TSMC lauded the funding as an important part of bringing its most advanced chip manufacturing to the US.

“The proposed funding from the CHIPS and Science Act would provide 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 Chairman Dr. Mark Liu. “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”

The Commerce Department says it the US is now on track to produce 20% of the world’s leading chips by 2030, driven in large part by the CHIPS Act investments.