BLOOMINGTON, Minnesota: U.S. semiconductor manufacturer SkyWater Technology, in partnership with the state and Purdue University, has announced plans to invest $1.8 billion in a chip research and production facility in Indiana.

The announcement comes one day after the U.S. Senate approved a slimmed-down version of the “CHIPS Act,” which aims to provide the semiconductor industry with billions of dollars in subsidies and tax credits.

“This endeavor to bolster our chip fabrication facilities will rely on funding from the CHIPS Act,” said Thomas Sonderman, chief executive of Bloomington, Minnesota-based SkyWater, as quoted by Reuters.

“Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic re-shoring of semiconductor manufacturing,” he added.

SkyWater expects the ground breaking for the new factory to occur in 2023, according to its spokesperson, but the timing would depend on whether the chip legislation is passed.

SkyWater said the factory will be located on the Purdue campus in West Lafayette, as the location will help the company and its customers benefit from its collaboration with the university.

In the SkyWater statement, U.S. Senator from Indiana Todd Young said, “We are on the verge of passing a major investment in next generation technologies that is vital for the success of this and future projects, and that will ensure Indiana remains at the center of our high-tech national security economy.”

SkyWater manufactures semiconductors at its Minnesota factory for customers that include automotive, aerospace, biomedical, cloud and computing firms, as well as the U.S. government.