This story was originally published on the Benzinga India Portal.

U.S. memory chipmaker Micron Technology (NASDAQ:MU) is reportedly close to committing $1 billion to $2 billion to build a semiconductor-packaging factory in India

What Happened? The firm is close to an agreement for the major investment, which could officially be announced during Prime Minister Narendra Modi‘s upcoming visit to the U.S., sources told Bloomberg.

The firm’s latest move is seen as part of its strategy to diversify its geographic presence amid ongoing tensions between the US and China.

The potential agreement would align with Modi’s ambitious “Make in India” initiative, aimed at promoting domestic manufacturing and attracting foreign investment. At the same time, it would give the US an opportunity to strengthen critical supply chains outside of China — a key objective emphasized by US National Security Adviser Jake Sullivan during his recent visit to New Delhi.

The investment plans come in the wake of China’s ban on the use of Micron chips in critical infrastructure, creating uncertainty for U.S. chipmakers in the world’s largest semiconductor market. In response, Micron recently pledged an additional $600 million investment in its Chinese plant, saying it was committed to the world’s second-largest economy.

The move also reflects the broader U.S. strategy of diversifying advanced chip manufacturing, particularly in light of growing tensions with China and concerns cast a pall over an overreliance on Asian manufacturing centers, such as Taiwan. Micron, the largest US memory chipmaker, has already secured financial support for a $3.6 billion next-generation plant in Japan.