The team and the investors are excited that we have something different in the sector and are in at the very early stage of a venture that promises substantial long-term growth.

Professor Gehan Amaratunga

Its technology is being described by investors as some of the most exciting they have seen emanating from the University and the company has just closed a £3.9M investment, taking the entire investment in the company to £ 4.25M - a striking achievement given the gloom in the sector globally.

Cambridge Semiconductor was spun out of the Department of Engineering with an initial investment of £250,000 from the Cambridge University Challenge Fund.

"The University's strength and support in helping us to reach this stage should not be underestimated," said Prof Amaratunga. "The team and the investors are excited that we have something different in the sector and are in at the very early stage of a venture that promises substantial long-term growth."

"The timing is just right: it is no bad thing that the market is down: when it bounces back up we should be in the vanguard with something new."

The company's power integrated circuits can be used in a range of different applications, from power supplies for computers and mobile phones to domestic appliances, such as washing machines, refrigerators, vacuum cleaners and air conditioners.

Its 'disruptive technology' offers the potential to improve significantly the performance and energy efficiency of such appliances as well as reduce the overall systems cost.