A South Side specialized chip developer said yesterday that it planned to expand its operation and add more than 100 jobs over the next three years.

The expansion will increase the size of Akustica Inc.'s work force from 23 to 128, filling positions in engineering, operations and sales. The 3-year-old firm makes tiny MicroElectroMechanical (MEMs)-based chips that improve acoustics for products such as cellphones and hearing aids.

The company holds an exclusive license to technology designed by its chairman and chief technology officer, former Carnegie Mellon University engineering professor Ken Gabriel.

Yesterday's announcement coincided with $1 million in financial aid from the state. The state Department of Community and Economic Development package includes a $500,000 grant for equipment, $333,000 in tax credits that provide $1,000 for each job created over a three-year period, a $100,000 grant for job training and a $100,000 general grant for job creation in the state.

Fast-growing Akustica garnered $8 million in equity financing last fall, bringing its total venture financing to $12.5 million. Investors included FreeMarkets Chairman Glen Meakem and California-based venture capital powerhouse Mobius Venture Capital.

Chief Financial Officer Steve Harrell said the combination of grants and tax credits would allow the company to grow and get its products to market more quickly.

"The demand for silicon microphones," which Akustica makes, "is exploding in cellphones and personal digital assistants and other consumer electronics," Harrell said. "The market is taking off so much more quickly than anybody expected."