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American memory-chip giant Micron plans to increase investment in its China-based factory by over half a billion dollars, a decision that came shortly after China banned critical infrastructure operators from buying the firm's products in response to Washington's tech war against Beijing.

China's decision then aimed to ensure "the cybersecurity of products and threats to the security of the country's key information infrastructure," Chinese Foreign Ministry Spokesperson Mao Ning said then.

"This is a necessary measure to ensure national security."

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Micron said on its account on WeChat social media app that it intends to invest 4.3 billion yuan ($603 million) over the next few years to expand and upgrade its factory located in the Chinese city of Xi’an.

“This investment demonstrates Micron’s unwavering commitment to its China business and team,” said the group’s chief executive Sanjay Mehrotra.

The US-based firm announced this step after Chinese electronic consumers started to look for alternatives to Micron's memory chips, two people informed on the matter said, according to the Financial Times.

Micron will also purchase packaging equipment from a Xi’an-based subsidiary of Taiwan’s Powertech Technology, in addition to introducing a new production line.

The company has been “preparing for the project for some time," said Micron in a statement.