Micron Technology, Inc, the US-based manufacturer of memory chips, announced on Thursday that it would be investing up to $825 million in a new factory in Gujarat, India designed for the assembly and testing of chips. It will be the first factory it has built in India.

Micron said that after aid from both the Indian central government and the government of the state of Gujarat, the total cost of the new facility will be $2.75 billion. It noted the Indian central government would be covering 50% of that total, the government of Gujarat would be covering 20%, and it would be covering the remainder.

Earlier in the week, Reuters had reported that The Indian cabinet had voted to approve the project just prior to the official US state visit of Indian Prime Minister Narendra Modi, which began on Wednesday.

According to Micron’s statement, the new facility will see construction begin in 2023, with the first phase of the project becoming  operational in late 2024. A second phase of the project will begin sometime after 2025, the company said. Together, the two phases will generate up to 5,000 new Micron jobs in the region.