The plant produces microchips for computers

The firm is keen, however, to diversify into new products such as the integrated circuits needed to control the liquid crystal displays used in mobile phones and notebook PCs.

Some of the new money will go to manufacturing these products, strengthening the Livingston factory's future.

First Minister, Donald Dewar, welcomed the announcement, saying it highlighted the company's commitment to and confidence in the workforce in Livingston.

He said: "I think the significance is that this is �60m of investment the company is putting in unaided because, clearly, they have great faith in the future of the Livingston plant.

'Vote of confidence'

"It employs 1,500 people and I hope it will expand, but the important thing is the growth in the semiconductor field where they are going down to the leading edge.

"I think even more significantly they are now going to have an even bigger mix in the range of products and a big boost for liquid crystal display, for logic equipment."

He added: "That suggests a real vote of confidence in the Livingston staff and the future of the plant."

It follows an announcement in February by American firm ADC that it will create up to 1,100 manufacturing jobs in Glenrothes.

ADC, which specialises in transmission and networking systems, is to site its European manufacturing base in the Fife town.

It plans to make sophisticated copper, optical fibre and wireless products for the European telecommunications industry.

The Minnesota-based firm said it was investing �27m ($43m) in a 50,000 square feet plant at Bankhead Park.

New call centre posts

Meanwhile, up to 100 call centre jobs are to be created in Aviemore.

Operators TSC hope to triple their staff at the �2m centre at Strathspey.

Highlands and Islands Enterprise chief executive, Iain Roberston, said the investment represented an important diversification in an area currently heavily dependent on tourism.

TSC currently employ more than a thousand people across Scotland.