A MICROELECTRONICS factory takeover can be a catalyst for new jobs and longterm stability at the site, it has been claimed.

Kaiam Corporation is expanding into Compound Photonics’ base at Newton Aycliffe, County Durham.

The deal, revealed by The Northern Echo earlier this week, has provided security for about 100 highly-skilled jobs and potential for new roles.

Kaiam, which has factories in the US and Scotland, says the Aycliffe plant will allow it to continue making transceivers, which help transmit and receive data that is uploaded to the internet and stored in data centres.

Last night, MP Phil Wilson welcomed the company’s commitment, saying he aims to speak to management soon to hear their plans.

However, Mr Wilson, whose Sedgefield constituency includes Newton Aycliffe, also revealed he hopes Kaiam’s move can deliver lasting growth at the plant, which has endured a chequered history having been passed through a number of companies’ hands.

He told the Echo: “It is good news that the jobs have been secured.

“I look forward to meeting the company to discuss with them their plans for expansion.

“What we want at that site is stability.

“We need a long-term commitment to the workforce, Newton Aycliffe and to South Durham.”

Kaiam’s deal, which is expected to be fully completed in the coming weeks, comes after Compound officials told the Echo they were talking to interested parties.

Brian Bolger, Compound’s chief financial officer, confirmed its focus had changed, adding the business will become a shareholder in Kaiam.

He added: “The company no longer needed an in-house laser facility at Aycliffe, and is very pleased its team are joining a fast-growing company in Kaiam.

“As part of the transaction, Compound Photonics is investing in Kaiam to become a significant shareholder, and looks forward to Kaiam’s continued success.”

Bardia Pezeshki, chief executive at Kaiam, said the Aycliffe factory will allow the business to bolster production, citing work on next generation circuits for advanced transceivers.

He added: “The Aycliffe site is a world-class facility in both capabilities and scale for producing devices.

“This acquisition not only allows us to ramp up products in the short-term, but gives us access to advanced processes at low cost that we will need in the longterm.”

Compound took on the Aycliffe plant from RFMD in 2013, when that company took work back to the US and the factory has endured a number of false dawns over the years.

It was classed as the world’s most advanced microchip factory when officially opened for Fujitsu by the Queen in 1991.

However, the building closed when the Japanese technology firm buckled under a worldwide collapse in memory chip prices.

It was subsequently bought by Filtronic, which makes and supplies antennas and e-band transceivers that increase mobile phone mast performances and network data carrying, before being taken on by RFMD in a £12.5m deal a decade ago.