(Bloomberg) -- City officials in Phoenix, Arizona approved a slate of financial incentives and government support for Taiwan Semiconductor Manufacturing Co.’s planned $12 billion chip plant, a step toward bringing high-tech manufacturing to the U.S. and addressing national security concerns over the industry supply chain.

The city agreed to provide about $200 million to develop roads, sewers and other infrastructure, according to a notice from the city council. At least one additional traffic light will be included for a cost of approximately $500,000. The company is conducting due diligence on several locations in Phoenix with a final decision to be made later.

The decision to locate a plant in Arizona came after the Trump administration warned about the threat inherent in having much of the world’s electronics made outside of the U.S. TSMC, the primary chipmaker for companies like Apple Inc., had negotiated a deal with the administration to create American jobs and produce sensitive components domestically for national security reasons. The Phoenix project is projected to create about 1,900 new jobs over five years, the company said.

TSMC has said that it hopes to convince its own suppliers to set up operations in the vicinity of its new fabrication facility over time. Chip giants Intel Corp. and Micron Technology Inc. already operate facilities in the western state and have helped build a vibrant local semiconductor industry over the years.

TSMC had said that subsidies would be critical in setting up a fab in the U.S., given the additional expenses involved. While Phoenix has approved its infrastructure spending, TSMC is still waiting on state and federal subsidies and incentives that could surpass by far the city’s expenditures.

Representatives for the company and the city council had no immediate comment.

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