A Birmingham-based materials technology company which is striving to create the next generation of microchips has raised £200,000 of new funding.

This latest investment in Irresistible Materials follows its recent success in winning a £460,000 grant from government innovation agency Innovate UK to develop its new photo-resist material which will allow the creation of smaller and lighter devices.

Photo-resist is used to coat silicon chips before features are etched onto them using ultraviolet light in a process known as lithography which creates the modern equivalent of wires.

Irresistible Materials is in the final stages of testing a new photo-resist coating which will enable chip manufacturers to meet a new industry standard related to the width of the ultraviolet light used.

This latest funding round, received from Mercia Fund Managers and a syndicate of US angels, will support the ongoing development and commercialisation of photo-resist and another solution used for semiconductor manufacturing.

The company was founded as a spinout from the University of Birmingham in 2010 and also received funding from Mercia in 2013.

David Ure, founder and executive director of Irresistible Materials, said: "The next 18 months will be an exciting and critical window for Irresistible Materials as we re-orient our focus from R&D towards product development and prepare our material for entry into the microchip production process.

"The Innovate UK grant, supported by our investment partners, provides the foundation for the company to execute its development roadmap through 2018 and positions us for further expansion later this year."

Mark Volanthen, head of electronics, materials, manufacturing and engineering at Mercia Fund Managers, added: "As consumers demand ever smaller and faster devices, the semiconductor industry is constantly seeking ways to reduce microchip sizes. Irresistible Materials' products which consist of patented small molecules help chip manufacturers to meet these demands.

"With this latest investment and grant funding, the company is on target to bring new products to the market in time for the introduction of next-generation chips in 2019."