The MIT 1000 system is used in food safety as it can identify bacteria such as listeria or salmonella within five minutes.
OSIO will be responsible for the fabrication of photodiode detectors for the MIT 1000, which MIT hopes will become AOAC RI certified in 2010.
The MIT 1000 will initially be constructed at OSIO's facility in California, but plans are to move production to India or Malaysia as fabrication volumes increase.
Manoocher Mansouri, president of the optoelectronics manufacturer, said OSIO was pleased to be collaborating with MIT.
"We feel their innovative product will become a valuable tool to help prevent widespread bacterial contamination in the future," he said.
OSIO encompasses a number of subsidiary companies which operate in a range of sectors.
It manufactures photo diodes and optical sensors as part of UDT Sensors in the USA, while AME supplies micro electronics.
