New Delhi/Washington – India’s cabinet has given the green light to Micron Technology’s $2.7 billion plan to establish a semiconductor testing and packaging facility. A senior government source, speaking on condition of anonymity, revealed this development to Reuters. The approval comes just ahead of Prime Minister Narendra Modi’s upcoming trip to the United States.

The Micron plant is scheduled to be constructed in Gujarat, Modi’s home state. The Indian government intends to provide production-linked incentives worth 110 billion rupees ($1.34 billion), according to the official. The announcement of this initiative is anticipated during Modi’s visit to the U.S., although the source declined to disclose further details.

Requests for comments from Micron, as well as the Indian government’s technology ministry, went unanswered by their respective representatives.