How can the use of mysqli_set_charset() function impact the handling of Umlaut characters in PHP scripts?

When handling Umlaut characters in PHP scripts, it is important to set the character encoding properly to avoid issues with displaying or storing these characters. The mysqli_set_charset() function can be used to specify the character set for the connection to the database, ensuring that Umlaut characters are handled correctly.

<?php
$mysqli = new mysqli("localhost", "username", "password", "database");

if ($mysqli->connect_error) {
    die("Connection failed: " . $mysqli->connect_error);
}

$mysqli->set_charset("utf8");