AN ABINGDON hi-tech company that has developed a world-beating device in the field of telecommunications is to receive a £5.9m cash injection.

Intel, the world's largest semiconductor manufacturer, has invested the money in Bookham Technology of Milton Park.

The firm has come up with the know-how to combine optics and electronics on a silicon chip.

The invention has already won Millennium Product status for Bookham from the Design Council.

The new technology could eliminate the need for cumbersome and expensive equipment to convert light signals carried by optic fibre to signals that can be carried over copper wires to offices and homes.

Bookham's new technology, called ASOC, could cut the cost of equipment needed in the process from £300,000 to a few thousand pounds.

The new cash injection from Intel follows a similar sum from another US company, Cisco Systems.

Bookham chief executive Andrew Rickman said: "This investment from Intel reinforces our belief that ASOC is the future of optical networking."

He added: "At a time when the semiconductor industry is experiencing significant set-backs, it is reassuring to see major players like Intel and Cisco see a bright future for Bookham Technology.

"With the Internet playing an increasingly important part in people's working and recreational lives, this is a logical move for Intel."

Bookham is still mainly owned by its management team though the two US companies have now taken a few per cent of the stock. The exact amount is undisclosed. Other investors include venture capitalists 3i.

Bookham Technology, which employs 150 people and is planning to expand further, was founded by Dr Andrew Rickman in 1989. It moved to its present offices last year from the Rutherford Appleton laboratory at Chilton, near Didcot.

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