US memory chipmaker Micron Technology said on Friday that it will invest 4.3 billion yuan ($602.77 million) in its chip packaging and testing factory in Xi'an, Shaanxi province over the next few years.

The company said in a statement that it has decided to acquire the chip-packaging equipment of a Chinese chip company, roughly translated as Licheng, and introduce new and high-performance packaging and testing equipment to better meet the needs of Chinese customers.

The move came after the Cyberspace Administration of China said in May that products of Micron sold in China have not passed a recent cybersecurity review, and operators of the country's key information infrastructure should stop purchasing its products.