The U.S. Commerce Department said Friday it has finalized a $6.6 billion government subsidy for Taiwan Semiconductor Manufacturing Co's U.S. unit for semiconductor production in Phoenix, Arizona.

The Biden administration finalized its Chips Act incentive awards for Taiwan Semiconductor Manufacturing Co., marking a major milestone for a program meant to bring semiconductor production back to US soil.

TSMC and the U.S. Department of Commerce finalized a deal Friday, granting TSMC $6.6 billion in funding and $5 billion in loan guarantees under the CHIPS Act to build its Fab 21 site in Arizona.