Taiwan Semiconductor Manufacturing Co.'s (TSMC) planned $12 billion Arizona chip fab inched closer to reality Tuesday after Bloomberg reported the company has secured government subsidies.

The announcement comes weeks after the Taiwanese chipmaker, amid geopolitical pressures to reduce U.S. dependence on Asia, announced plans to build the facility. The fab will reportedly produce upwards of 20,000 silicon wafers per month, using the company’s 5-nanometer process. TSMC anticipates the factory will open some time in 2024, and employ more than 1,600 people.

While TSMC has not disclosed the proposed location of the facility, Bloomberg reports the chipmaker has selected a location and hopes to convince suppliers to set up operations nearby.

How much support the Taiwanese chipmaker can expect from the U.S. government remains unclear. However, the report claims the future of the planned facility will be dependent on TSMC receiving adequate government subsidies.

"Subsidies will be a key factor in TSMC's decision to set up a fab in the U.S.," TSMC Chairman Mark Liu told Bloomberg. "We are still talking to the U.S. government. Our request is that the state and federal governments together make up for the cost gap between the U.S. and Taiwan."

TSMC isn't the only chipmaker that is asking for financial concessions from the U.S. government.

Last week, The Wall Street Journal reported that lobbying group Semiconductor Industry Association had proposed $37 billion in subsidies to support the construction of domestic semiconductor fabs, research funding, and aid for states seeking to woo manufacturers.

Intel has said it is working with the U.S. government to explore ways to strengthen domestic manufacturing, but the company has yet to disclose any plans for a U.S. fab.

Over the past month, the Trump administration has steadily escalated its campaign to end U.S. reliance on Asia for the manufacture of semiconductor technologies.

In late May, the U.S. Commerce Department announced it would require all non-U.S chipmakers using American equipment, intellectual property, or design software to apply for licenses to sell to China-based equipment vendor Huawei.

TSMC, which is one of Huawei's largest suppliers, was almost immediately caught in the crossfire. In the wake of the U.S. restrictions, Nikkei reported that TSMC had halted all new orders to China.

The move has badly bruised Huawei and its semiconductor division HiSilicon, effectively putting the company into "survival" mode.

"This is going to hurt them significantly," said Will Townsend, senior analyst of networking infrastructure and carrier services at Moor Insights and Strategy, in an interview with SDxCentral. "Huawei is going to have to do a hard pivot in order to supply themselves with enough silicon to keep things going."

Townsend also noted that the U.S. Commerce Department's decision has wide-reaching implications for other chipmakers, many of which do a substantial amount of business with the Chinese telecommunications vendor.

However, Bloomberg reports TSMC remains hopeful it will be able to secure the necessary licenses to continue supplying Huawei, and if it cannot that it can overcome that loss.