India’s cabinet approved INR110 billion ($1.3 billion) in production-linked incentives for a chip packaging and testing facility Micron Technology plans to construct in west India, Reuters reported.

Micron Technology plans to build a $2.7 billion plant in the state of Gujarat, the news outlet stated.

Last week, Micron Technology committed to investing CNY4.3 billion ($597.8 million) to set up a new production line in China, less than a month after facing a ban there.

Richard Windsor, founder of research blog Radio Free Mobile, suggested the investment may have already been in the books and is unlikely to push regulators to reverse the ban.

With rising trade tensions between the US and China, many tech companies are looking to India to avoid increased restrictions on access to high-end components and chipmaking machinery.

To push Prime Minister Narendra Modi’s Make in India initiative, the government awarded INR450 billion in incentives to domestic and international electronics companies in 2020.

The green light for Micron Technology comes as Modi holds talks with business leaders in the US. He is scheduled to meet with US President Joe Biden tomorrow (22 June).