TeraDiode, Inc., a company working on new technology that makes ultra-high brightness direct diode lasers for industrial applications, including steel cutting and welding, is creating a 25,000 square foot high-technology manufacturing center on Upton Drive in Wilmington, Mass.

As an incentive to assist the firm in expanding in the Commonwealth, MassDevelopment provided a $2 million term loan from its Emerging Technology Fund. To outfit the building, TeraDiode is creating 15,000 square feet of manufacturing floor space, most of which requires a clean room environment and specialty alignment equipment. TeraDiode will use loan proceeds to buy equipment for assembly, testing, laboratory and office uses, laboratory construction, and working capital for assembling lasers, Mass Development said.

Dr. Parviz Tayebati, CEO of TeraDiode said, “Wavelength beam combining direct diode is a disruptive force in the industrial laser market. The loan from the Emerging Technology Fund is instrumental in scaling our operation so that more customers can benefit from the breakthrough productivity advantages inherent in our technology. The faster we scale, the more jobs we generate in the Commonwealth.”

TeraDiode is developing direct diode laser technology for industrial and military applications. The company’s technology, pioneered at MIT Lincoln Laboratory, has broken records for combined power and beam quality from a direct diode laser. Many experts consider direct diode lasers to be the future of the industrial laser industry. TeraDiode is backed by investments from Stata Venture Partners, Argonaut Equity Partners, and Camros Capital.

“TeraDiode’s breakthroughs in laser technology embody the collaborative, cutting-edge quality of the Massachusetts high-tech industry,” said MassDevelopment President and CEO Marty Jones. “We’re pleased to leverage this loan from the Emerging Technology Fund to help the company’s expansion in Wilmington.”