The optical components company, Kaiam Corporation, will create 103 new jobs as part of the investment.
It is understood the business, which has its headquarters in California, is to relocate its production facilities to the West Lothian town from China and expand its base in Livingston. The project is being supported by a £850,000 grant from Scottish Enterprise.
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First Minister Alex Salmond unveiled the announcement during a trip to New York.
He said: "In Scotland, there are 12 universities with over 400 researchers engaged in optoelectronics research. Today's announcement will undoubtedly be a boost for the Livingston area and enhance Scotland's optoelectronics industry.
"We are committed to support job growth and investment in this sector, an area where Scotland has been historically strong and will continue to strengthen. This is a company that clearly has global ambitions and I am delighted that Kaiam has decided to further invest in Scotland and in doing so securing jobs in Scotland for the long term."
(JP)
