IRISH TECHNOLOGY firm ChipSensors is set to expand following its acquisition by a major US semiconductor firm.

The firm, based in University of Limerick, was bought by Texas-based Silicon Laboratories in an all-cash deal understood to be worth about €10 million.

Bank of Ireland’s Kernel Capital Equity Fund confirmed earlier this week it had sold its 40 per cent share in the company to Silicon Laboratories.

Set up by Tim Cummins in 2005, ChipSensors develops silicon sensor chips to detect temperature, humidity and gases.

Mr Cummins said the buyout of the firm would enable his company to get its products out to market more quickly.

“Joining Silicon Laboratories, we suddenly get a step-up improvement by their sales force, production and quality infrastructure. They’ll take our new products out to market very quickly,” he said.

“I founded the company some years ago with this dream of doing single-chip wireless sensors. We have the novel sensors and that part of the technology. Silicon Labs have the wireless and micro-controllers. It’s like putting a jigsaw together to accelerate the products into the market.”

The firm was supported by the Kernel equity fund at an early stage with a loan of €100,000. It also got backing from Shannon Development, the Clare County Enterprise Board and the Environmental Protection Agency. Kernel made a further eight investments in ChipSensors, including a €2 million investment by a syndicate that included Enterprise Ireland and London-based ETV Capital. Kernel’s total investment reached €1.95 million.

“Following the acquisition, ChipSensors will take on the Silicon Labs brand as the firm establishes its first Irish base, but current staff and management will remain. It’s a perfect fit for what we’re doing and they have a big brand worldwide already,” Mr Cummins said.

There are some changes planned, however. ChipSensors employs six people, but Mr Cummins said the firm was already increasing to nine or 10, with plans to expand further next year.