NEWPORT's world-beating Surface Technology Systems has formed a strategic alliance with US-based XACTIX.

The Gwent firm makes specialist machines for processing wafers made from silicon and compound semi-conductor materials using dry gas technology.

The two companies, both leaders in the growing field, will work on a range of marketing and new product development projects. From the latest mobile phone technology to air bag sensors and fibre optic switching, STS makes the machines that are making the future possible.

The technology and equipment are used by STS's customers for the fabrication of tiny mach-ines called MEMS (micro-electro mechanical systems).

The communication devices are found in everyday products, like air-bag triggers, stability control and braking systems in cars, power amplifier chips in mobile phones and optical switches enabling faster data transmission over the Internet and telecommunication networks.

Initially the two firms will combine their current products into a unified product line which both will sell. XACTIX will benefit from the services of STS's worldwide sales and servicing organisation.