Dublin-based company, Massana, has signed a contract worth more than £1 million with Analog Devices to work on integrated circuit design for digital video - including the next generation of digital TV and communications applications.

Analog, which employs more than 1,100 people at its Limerick plant, would usually look to Silicon Valley in the US for this type of expertise. "It is a tribute to the development of the Irish knowledge-based technology sector that Analog Devices was able to find this expertise in Ireland," said Mr Dick Meaney product line director with the Limerick company.

Founded in 1994, Massana specialises in Digital Signal Processing (DSP) research and development and is a spin-off of the UCD DSP research group. The company, which currently employs 14 people, plans to double that number by the end of next year.

DSP is the enabling technology behind digital TV, mobile telecommunications and high-speed digital communications systems. These areas are developing rapidly. The Dublin company will work with Analog's IC development teams in the US, India and Ireland.