SkyWater, a U.S. chip company, has announced a C$1.8 billion investment in a chip research and production facility in Indiana.

The project, conducted in partnership with the state and Purdue University, is heavily influenced by a law known as the CHIPS Act, which provides billions of dollars in subsidies and tax credits to semiconductor companies.

SkyWater says the Indiana facility will be located on the Purdue campus in West Lafayette and that the strategic location will help the company and its customers benefit from working with the university and its pipeline of talent.

“This endeavor to bolster our chip fabrication facilities will rely on funding from the CHIPS Act. Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing,” said Thomas Sonderman, chief executive of Bloomington, Minnesota-based SkyWater.

A spokesman said the project is planned for 2023, though the timing would depend on whether the chip legislation is passed.

“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 centre of our high-tech national security economy,” U.S. Senator of Indiana Todd Young said in the SkyWater statement.

The sources for this piece include an article in Reuters.