The U.S. Department of Commerce will award $6.6 billion in grants to support the construction of a U.S. semiconductor manufacturing hub by Taiwan Semiconductor Manufacturing Company (TSMC), the leading semiconductor chip manufacturer responsible for producing a majority of the world’s supply.

On April 8, President Joe Biden said the CHIPS and Science Act funds will support the Taiwan-based chip-making giant’s third chip factory in Phoenix, AZ.

In total, TSMC has said its total investment in Arizona will be $65 billion. The company previously committed to building two other manufacturing facilities in Phoenix. All three will now form a “cluster” production hub.

“These facilities will manufacture the most advanced chips in the world, putting us [the U.S.] on track to produce 20% of the world’s leading-edge semiconductors by 2030,” Biden said in a statement.

The agreement with the Department of Commerce also dedicates $50 million of CHIPS funding to training and developing the local workforce.

A reliable domestic supply of chips will “underpin the future economy,” federal officials said. Semiconductors power artificial intelligence technologies which the distribution industry is embracing, as well as consumer electronics, automotive, Internet of Things and high-performance computing.

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“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,” Biden wrote.