GWENT semiconductor firm Atlantic Technology has struck a major deal with UK microchip firm Siroyan.

The manufacturing agreement with the Crumlin-based semiconductor assembly and test services provider will assemble and package Siroyan's test chip called Spey.

Siroyan says it will use the test chip for benchmarking and development programmes with its affinity customers.

Siroyan says its chose Atlantic Technology, which has its headquarters in Texas, after considering a wide range of other global facilities.

The Reading-based firm says a major factor in its decision to choose Atlantic Technology in Crumlin, which employs 250 people, was its advanced packaging techniques and commitment to high quality and reliability.

The Spry test chip will be a version of Siroyan's first synthesizable core, codenamed Rubicon.

Adrian Wise, Siroyan technical director said: "The UK is second only to the US in the number of semiconductor IP (internet protocol) design companies, yet nearly all assembly is focused in the Asia Pacific region.

"Having such a world-class customer-focused operation practically on our doorstep is a major benefit and will help us quickly and effectively realise our test-chip.

"We are delighted to be partnering with Atlantic technology."

Atlantic Technology managing director Jeff Baloun said: "Reducing cycle-times for businesses across the globe, and yet achieving a high-quality and reliable service, has been a key factor in our success to date.

"While our core capability is focused on high-volume probe, assembly and test, we are delighted that a company like Siroyan, which is redefining technology boundaries, has selected Atlantic technology as its assembly partner."