News

28 May 2009

 

Scottish opto foundry CSTG secures $6m refinance deal

Compound Semiconductor Technologies Global Ltd (CSTG) of Glasgow, UK, which was formed in 1998 by the universities of Strathclyde and Glasgow together with Scottish Enterprise and claims to be the only 'pure play' foundry supplier of III-V optoelectronics wafers and chips, has agreed a $6m finance deal consisting of $3.4m of new investment and the restructuring of long-term debt.

The new funds were secured through private equity fund European Digital Partners (EDP), Scottish Enterprise’s co-investment fund, and the Scottish Government’s Regional Selective Assistance (RSA) scheme.

The funding will allow the firm to expand its capabilities through the purchase of new equipment and technology, and go towards further development of the firm's device process platforms for the defense, medical, industrial and communications markets. The firm will also further develop its quality of service to its OEM and fabless customer base worldwide.

The new funding follows the recent award of a collaborative £1m development contract in the high-speed communications market for next-generation local broadband access.

“Building on a solid performance over a number of years, we’ve had an incredibly successful few quarters of trading and this additional funding will enable us to expand our capabilities and enhance our service offering,” says chief executive Neil Martin. “In addition it will allow our R&D team to develop platforms for our developing markets, including faster compound semiconductor laser products for broadband access devices,” he adds.

“The ability to buy new equipment will allow us to provide more complex devices with enhanced quality and services, enabling us to widen our market access,” continues Martin. “This investment will allow us to strengthen our position of being a volume supplier of complex quality products.”

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Visit: www.compoundsemi.co.uk