The new company formed from the management buy-out of Plymouth's X-Fab plant is to receive nearly £1million from the South West Regional Development Agency.
 
The cash will be injected during the next three years to help the new Plessey Semiconductors Ltd operation to develop. Launched this week, the firm was created when Roborough's X-Fab plant was saved by a management buyout, protecting the jobs of 150 staff.
 
It was rescued in December when six of its management team linked up with five managers from Swindon's Plus Semi to take over both factories, for an undisclosed sum, and launch as Plessey Semiconductors.
 
It means the Roborough factory is back under the Plessey banner after 21 years. Plessey built the factory, but it was acquired by GEC and renamed GEC Plessey in 1989. Nine years later it was sold to Canadian form Mitel, which changed its name to Zarlink, and then acquired by X-Fab in 2002.
 
Plymouth-based finance director Chris Bailey is one of the 11-strong management team now in charge.
 
He said 20 workers would transfer to Plymouth from Swindon and the company planned to create another 30 jobs during the 'next few years'.
 
The semiconductor manufacturing facility in Roborough currently produces eight-inch wafers. Plessey Semiconductors will transfer the manufacture of some of its products to the Roborough facility this year, and new products will be created, too.
 
Mr Bailey said the RDA investment had been fundamental to ensuring the buyout went ahead.
 
"We have a plan to develop the business; that needs capital investment," he said.
 
"This RDA cash helped us to do this plan, and because it was available it allowed us to do the deal.
 
"We've now got to do get on with doing things very quickly. We need to get on with the new business."
 
Michael LeGoff, managing director of Plessey Semiconductors, said: "The historical significance of what we're doing is not lost on the management and employees of our new business.
 
"A large proportion of our employees started their careers in Plessey, working in sites around the UK.
 
"We see this announcement as a return to our roots."
 
Paul James, commercial director of Plessey Semiconductors Ltd, said: "We've been receiving very positive responses from the market about our plans to support our existing foundry customers and to engage new customers with new product releases."
 

The RDA cash is from the Grant for Business Investment scheme. RDA business investment adviser Paul Wilson said: "We're delighted to support a solution that provides continuity of well-paid hi-tech manufacturing jobs in the South West. The RDA is extremely pleased to be able to contribute to what should be an exciting new venture in the region."