The company, a major supplier to Apple, said on Friday that it “welcomes continued strong partnership” with the U.S. federal government and the state of Arizona. The factory is projected to open in 2024 and employ about 1,600 workers.

“The U.S. welcomes TSMC’s intention to invest $12B in the most advanced 5-nanometer semiconductor fabrication foundry in the world,” Secretary of State Mike Pompeo wrote on Twitter. “This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge tech and control critical industries.”

However, the new TSMC factory could aid the company’s push to prevent the implementation of economic sanctions against Chinese tech giant Huawei, which the U.S. deems a national security threat. TSMC is a major supplier of Huawei, and would experience a heavy financial toll if the U.S. adopts a proposed ban on the sale of semiconductor technology to Huawei.

While the factory will have an output of 20,000 chip wafers per month, a relatively small amount for TSMC, the decision to open the factory comes at the same time that the U.S. is raising concerns over dependence on supply chains based in China and other Asian nations. During the coronavirus pandemic, lawmakers have criticized U.S. reliance on Chinese manufacturers for medical supplies.

“We shouldn’t have supply chains,” President Trump told Fox Business on Thursday. “We should have them all in the U.S.”