In advance of Prime Minister Narendra Modi’s state visit to the United States, a senior government source said on Tuesday that India’s cabinet has authorised Micron Technology’s (MU.O) $2.7 billion plan for a new semiconductor testing and packaging operation.

The factory, which is slated to be built in Gujarat, the home state of Modi, would receive production-related incentives of 110 billion rupees ($1.34 billion), the Indian official continued. Prior to a scheduled announcement during Modi’s visit, he rejected to be named.

Due to the scale of the incentive package, the source noted, cabinet approval was necessary. The idea from Micron had already been publicised, but not the cabine permission.

Requests for response from representatives of Micron and the Indian government, including the technology ministry, went unanswered.

Modi’s trip to the United States, which begins on Tuesday, will include meetings with the CEOs of many leading American corporations, including FedEx (FDX.N) and MasterCard (MA.N), as well as an invitation to a state banquet at the White House on June 22.

The White House is pressuring American semiconductor companies to invest in India, and discussions about potential future investments are underway, according to U.S. government sources who spoke to Reuters.