To further diversify its geographic footprint, Micron Technology Inc. plans to set up a semiconductor packaging factory in India. According to people who know the matter, the company is close to an agreement to commit at least $1 billion toward the same.

The details could change as discussions are in progress, and there’s no guarantee an agreement will be finalized. As per a Bloomberg report, an announcement could be made as soon as Prime Minister Narendra Modi visits the US next week. This deal would mark a win for Modi’s ambitious “Make in India” plans.

One of the key motives of the PM’s state visit is to remove barriers to technological trade between the two countries, US National Security Adviser Jake Sullivan said in New Delhi on Tuesday.

The Indian investment comes from a Chinese prohibition on using Micron chips in what Beijing refers to as essential infrastructure. This decision has placed doubt on the future of US chipmakers in the world’s largest semiconductor market. Micron announced on Friday that it would invest an additional $600 million in its Chinese plant to generate jobs and boost the local market.

The United States is attempting to diversify advanced chip manufacturing as rising Chinese tensions raise concerns about the world’s reliance on Asian manufacturing hubs such as Taiwan. Micron, the largest American memory chipmaker, has also received financial backing for a $3.6 billion next-generation factory in Japan.