Micron Technology's proposal to invest $2.7 billion in establishing a semiconductor testing and packaging facility in Gujarat, India, has received permission from the Indian cabinet.

Prior to Prime Minister Narendra Modi's trip to the United States this week, the announcement was made.

To promote the project, the government will give production-linked incentives worth $1.34 billion (110 billion rupees).

This investment is anticipated to strengthen India's semiconductor industry and is consistent with Prime Minister Modi's goal of turning India become a major producer of semiconductors.