Apple CEO Tim Cook confirmed on Tuesday that the Cupertino-based tech giant will source chips from TSMC’s new Arizona factory. TSMC will own and operate the Arizona plant. Reports suggest it will be capable of manufacturing 4-nanometer and 3-nanometer wafers. These are used for advanced processors such as Apple’s A-series and M-series chips.

TSMC’s new Arizona plants are expected to be partially subsidized by the U.S. government, with the first plant in Phoenix set to produce chips by 2024. The second plant is scheduled to open in 2026, according to the Biden administration. TSMC said on Tuesday that it would spend $40 billion on the two Arizona plants.

If you don’t think this is a big deal…go back to writing with a lead pencil.