US semiconductor manufacturer Microsemi has reversed a decision to shut its factory in Ennis, Co Clare, citing an upturn in demand from the aerospace and satellite sectors for its products.

Microsemi currently employs 108 staff at its Irish operation. The company is currently considering moving some of its production there from a facility in Scottsdale, Arizona.

If it goes ahead with this decision, Microsemi would recruit an additional 60 to 80 staff over the next 12 months.

In April 2005 Microsemi announced that it would close its European manufacturing base with the loss of 131 jobs. At the time it said that it would consolidate manufacturing in two plants in the US - at Scottsdale and Lawrence, Massachusetts.

The move was part of a global restructuring under which it planned to shed 1,211 jobs for annual savings of between $6 million (€4.4 million) and $10 million.

Since then the Nasdaq-listed company has delivered much-improved financial results. In its second quarter to the end of March last it had sales of $106.7 million - up 25.7 per cent year on year. A variety of one-off charges meant that Microsemi reported a $19.6 million loss.

At that time, James Peterson, Microsemi's chief executive, commented: "We should see continued improvement in the coming quarter."

Microsemi has been in Ennis since 1992, when it acquired a factory previously occupied by Unitrode.