A SEMICONDUCTOR company based in the region will be given £63,000 of Government funding for research.
Durham Scientific Crystals (DSC) will receive the Department of Trade and Industry (DTI) grant to strengthen the company's profile through research.
The company has developed technology to produce semiconducting crystals to detect x-rays and gamma rays, and radiation detection equipment in markets such as medical imaging, security screening and non-destructive testing.
DSC was the first to perfect a process that allows semiconducting crystals to grow in vapour rather than liquid.
Managing director Dr Arnab Basu said: "It confirms the quality of the technology and gives us the resources to fund an 18-month project to develop a prototype large-scale commercial production system.
"The new process was discovered using science facilities at Durham University, paving the way for a spin-out from the world of academia to the market place. The DTI grant will enable us to take another important step forward and start production on a commercial scale.
"We have been able to improve yield by four to five times and also quality. The potential market worldwide is enormous and the plan is for the company to develop here in the North-East."
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