Goldman Sachs is leading a group of investors who have taken a 23 per cent shareholding in Dublin based company, Silicon Systems Limited (SSL).

The privately owned semiconductor design and intellectual property company did not disclose the value of the deal. According to SSL chief executive, Mr Brian Long, the cash injection will allow the company to grow at an accelerated pace next year.

SSL's plans for rapid expansion include a goal of increasing its research and development activities. More than 80 per cent of its business is currently conducted in the US where it has two offices and the new investment will be used to fund expansion there.

In the past two years, Goldman Sachs has invested in less than six European technology companies. According to Mr Kevin Fielding, SSL's chief operating officer, there are no immediate or concrete plans for SSL to seek public funding though it will be considering its options over the next year. SSL, which currently employs 200 people, is a leading developer of semiconductor technology, particularly digital signal processing (DSP) and analogous technologies. Recent developments indicate the DSP market is set to grow very rapidly. It was valued at $3.65 billion (£2.4 billion) last year.

The 23 per cent stake is being taken by GS Capital Partners III, L.P. and other investment partnerships affiliated with Goldman Sachs & Co.

Mr Fielding said SSL plans to acquire some companies in the coming year. With a lot of development going on in silicon technology, SSL now wants to invest heavily in a signal processing software company.

Goldman Sachs International chairman, Mr Peter Sutherland, said he looked forward to his group working with SSL.