Archer Materials (ASX:AXE) signed a contract to work with Interuniversity Microelectronics Center (IMEC) for the development of its Biochip and blood potassium sensor, according to a Tuesday Australian bourse filing.

IMEC will test the use of silicon-based devices such as ion-selective field effect transistors alongside Archer's graphene devices, as well as potassium ion sensors using semiconductor technology.

The IMEC stage 1 project work is expected to be completed by November. After this, Archer expects to progress to the next stage with IMEC, developing a full prototype which will include readout electronics and disposable cartridges for use with handheld biosensor readers.

The firm's shares jumped 8% in recent trading on Tuesday.