The US computer company's Derry plant will gain 85 jobs, and ten posts have been announced at Queens University in Belfast as part of the same project.
The company, which makes computer hard-drive components, currently employs 1,400 people at its site in Springtown in Derry.
The investment announcement comes days after NI Enterprise Minister, and Acting First Minister, Arlene Foster, outlined a series of measures aimed at improving support for businesses in Northern Ireland.
The strategy, which was prompted by an independent review of economic policy, aimed to put more focus on research and development work.
Seagate chairman and president Steve Luczo and executive vice president and chief technology officer Bob Whitmore travelled to Northern Ireland to mark the investment.
Mr Luczo said the development was of major importance to Seagate globally.
'Technical innovation is the cornerstone of our success and the decision to locate this important strategic R&D investment in Northern Ireland is a measure of our confidence not only in the Springtown operation, but also in the wealth of intellectual talent available here,' he said.
'The financial support of Invest Northern Ireland and that organisation's commitment to encouraging innovation were of pivotal importance in securing this venture for Northern Ireland.'
