Oct 16 (Reuters) - A new underground transmission line was approved by the New York State Public Service Commission linking an existing Clay substation with Micron Technology's MU.O proposed semiconductor megafab facility in Onondaga County, Governor Kathy Hochul announced on Thursday.

The two-mile, 345-kilovolt line is a key piece of infrastructure for Micron’s planned $100 billion investment in Central New York, the largest private investment in the state’s history, Hochul's press release said.

The project is expected to create more than 50,000 jobs over the next two decades, including 9,000 direct positions at Micron.

"This project is set to transform Central New York — and we're moving quickly ahead with all due speed and deliberation," Hochul said.

The transmission line approval follows a 2022 agreement between Micron and New York State, when the chipmaker selected the region for its advanced manufacturing facility. The megafab aims to produce one in four of all U.S.-made semiconductors by 2030.

The commission also approved environmental and construction plans for the first phase of the project, including the eastern expansion of the Clay substation and installation of equipment linking it to the Micron facility.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Lisa Shumaker)

((SarahS.Qureshi@thomsonreuters.com;))