TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) could receive more than US$5 billion (NT$157 billion) in U.S. federal grants for its upcoming fabs in Arizona.

According to sources, the exact amount of the grants has not yet been finalized, Bloomberg reported on Saturday (March 9). TSMC and other chipmakers are in talks with the U.S. Commerce Department over US$28 billion in grants meant for advanced semiconductor fabs, per Bloomberg.

TSMC, Intel, Micron Technology, and Samsung Electronics are all set to receive multibillion-dollar grants from that US$28 billion, although the amount for each company continues to fluctuate, sources told Bloomberg.

The Taiwanese chipmaker told the outlet that it “has been making steady progress in productive ongoing discussions with the U.S. government on incentive funding.” Meanwhile, the Commerce Department and White House declined to comment.

The Chips Act allocated US$39 billion in direct grants with an additional US$75 billion in financing options in a bid to bring more chipmaking back to the U.S. The report said that officials are hoping to make announcements for the advanced chipmakers by the end of March.

TSMC is investing US$40 billion to construct two fabs in Phoenix, Arizona. The first facility will produce 4nm chips and is slated to begin production in 2025, while the second fab has been delayed from 2026 to either 2027 or 2028, with the process technology to be manufactured dependent on the size of U.S. government incentives given.