The £21.6m Centre for NanoHealth will be built at Swansea University and will incorporate the Welsh Centre for Printing and Coating. It is claimed to be the first state-of-the-art 'nanohealth' facility of its kind in Europe.

Nanotechnology is the creation and control of matter on an atomic or molecular scale. Its promoters argue that it could be used beneficially in applications ranging from the eradication of illnesses to cleaning products.

Dr Tim Claypole, founder and director of the Centre for Printing and Coating at Swansea University, said: "Printing has the potential to turn concepts in nanotechnology into volume products; thereby rapidly reducing the time it takes between bench testing products and devices and conducting pilot trials.

"A key part of the Centre for NanoHealth will be printing laboratories dedicated to bio applications for development of new printed concepts for healthcare through to small volume production.

"These complement the existing facilities for polymer electronics printing in Welsh Centre for Printing and Coating."

The Centre for NanoHealth will also be involved in the production of enzyme inks that will be used for sensor production "scaffolding" on which to grow cell tissue structures and the development of DNA sensors, among other activities.

Ieuan Wyn Jones, deputy first minister for Wales, described the investment as a "major boost to our research and development capabilities".