American microchip maker Atmel is creating 150 jobs at its Tyneside factory with a £100m investment.
The company, which is based at Silverlink, in North Tyneside, announced its expansion plans on Monday.
It expects to take on most of the extra staff in the region and the recruitment will bring the workforce at the North Tyneside factory to 650.
Head of human resources and communications Ross Forbes said the company had been preparing for the expansion following the recession which had hit the industry.
He said: "The industry is recovering from its deepest economic recession. We have been preparing ourselves for the optimum time.
"This is our year of expansion."
Cutting-edge machinery
The company makes a wide variety of microchips for the consumer market including smart cards.
The job will be created across all levels in the company and it expects 75% of the new staff to be recruited locally.
The company opened on North Tyneside in September 2000 when it moved into the former Siemens factory.
The money will be spent on installing cutting-edge machinery and equipment which it aims to put it at the forefront of microchip production.
Mr Forbes said the equipment was as good as anything that was in Europe and the expansion would make Atmel one of the major hi-tech employers in the north-east of England.