Lambda Technologies, which owns a microwave technology used in the semiconductor and electronics-packaging market, has converted $9.3 million of debt into equity and is hoping to raise another $2 million from venture capitalists.

Lambda has closed on about $1 million in Series F funding and will complete the round by February. Intersouth Partners of Durham owns about 25 percent of Lambda, with three other investors owning about 60 percent of the company collectively.

Since 1994, Lambda has closed four venture capital rounds, attracting about $5.5 million. The largest investment came in the last round with one undisclosed investor pumping in about $3 million.

Lambda grew out of Raleigh-based Microwave Laboratories, which was forced to close operations in 1994 after the U.S. Navy demanded reimbursements for defective products. Its assets were liquidated and Intersouth, then also a big investor, revived the company.

As a result, Lambda Technologies was formed after it licensed a different microwave technology from Oak Ridge National Laboratory in Tennessee. Intersouth also brought back Microwave’s chief executive, Richard Garard, to head the company.

Now with some 20 employees, the Morrisville-based company subcontracts manufacturing but does most of its own assembly work.

Lambda Technologies: