Toucan Technology, the Galway-based semi-conductor design company, has announced plans to open a Dublin office and expand its existing operation, writes Jamie Smyth. This follows the securing of a $2 million (€1.9 billion) contract with the Canadian networking design company, PMC-Sierra Inc.

Under the terms of the new contract Toucan will design TEMUX and FREEDM semiconductor component chips, used in the development of high bandwidth connections for Internet services, for PMC-Sierra Inc.

Toucan's chief executive, Mr Pat Sheehan, said the components being developed by the company will enable the development of new equipment essential for the next generation of Internet systems.

Mr Sheehan said demand for new versions of this technology as well as growth in the core business - semi-conductor design services - was driving the company to increase its resources. "The growth of e-commerce and other Internet-based communications is dependent on the development of these high speed connections," said Mr Sheehan. "We hope to double the company within two years and employ 60 people."

Some 30 jobs will be created via the expansion which will provide openings for integrated circuit design professionals and senior engineers. Staff can opt to work in the Galway or Dublin office.