A MICROELECTRONICS firm says it is ready and able to meet customers’ ever-changing technology needs after completing a County Durham factory takeover.

Kaiam Corporation is expanding into Compound Photonics’ Newton Aycliffe base.

The deal, exclusively revealed by The Northern Echo in March, is expected to provide security for about 100 highlyskilled jobs and create potential for new roles.

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

Its commitment also offers fresh hope over the long-term future of the factory, which was previously home to companies including Fujitsu and RFMD, and Business Durham last night hailed Kaiam’s deal as good news for the site.

Bardia Pezeshki, Kaiam’s chief executive, who previously said the expansion would provide scope to extend work on next generation circuits for advanced transceivers, revealed the business will feel right at home in Aycliffe.

He added: “The facility gives us increased manufacturing scale.

“We already fabricate devices on silicon, and purchase discrete lasers and detectors as sources and receivers.

“However, future transceivers that run at higher speed and use complex formats, will require elements that are highly differentiated, and will not be readily available in the market.

“This facility will give us this essential capability, positioning us well to meet customers’ needs for continuously improving speed, cost, power, density and manufacturing scale.”

Dr Simon Goon, managing director at Business Durham, which is Durham County Council’s business division, said Kaiam’s move was a real boost for the region’s technology sector.

He added: “Kaiam is an international corporation that has already found success in the UK.

“I am pleased the manufacturing capability is to be retained in County Durham, and that it will continue to grow the photonics industry in the UK.”

Confirmation of the move also officially banishes fears the deal could have been scuppered by shareholder conflict.

A source close to Compound had previously told the Echo that investor unrest over a subscription agreement to support the business’ short-term future, outside of any acquisition, had the potential to hinder the agreement.

Compound took on the Aycliffe plant from RFMD in 2013, when that company took work back to the US.

However, speaking earlier this year, Brian Bolger, chief financial officer, said its focus has changed, adding the business has invested in Kaiam.

He said: “The company no longer needed an in-house laser facility at Aycliffe, and is very pleased to become a significant shareholder in Kaiam.”

The Aycliffe plant was classed as the world’s most advanced microchip factory when it was 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.