The United States says it will provide up to 6.6 billion dollars to Taiwan's TSMC for building cutting-edge semiconductor factories in Arizona.

The administration of President Joe Biden announced an agreement with the leading chipmaker on Monday.

TSMC has been constructing two plants in Arizona. With the subsidy, the maker will produce the world's most advanced 2-nanometer chips at the second plant.

The maker also plans to build a third plant, which will produce 2-nanometer or even more advanced products.

In total, TSMC will invest 65 billion dollars in the state.

Biden said in a statement that the US is producing "none of the most advanced chips, exposing us to significant economic and national security vulnerabilities."

He also said, "Semiconductor manufacturing and jobs are making a comeback."

The financial support for TSMC came after the administration announced in March that it will provide up to 8.5 billion dollars to US chipmaker Intel.

The administration is trying to bolster supply chains of advanced chips to counter China. It also wants to show voters that it is supporting domestic manufacturers and creating jobs, as Biden aims to win a second term in November.