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Calumet Electronics invests nearly $51 million into future organic substrate facility, assisted by state grant

Calumet Electronics to construct first-and-largest-of-its-kind in U.S. facility for organic substrate manufacturing, retaining 270 jobs. 

LANSING, Mich. – Today, Governor Gretchen Whitmer joined the Michigan Economic Development Corporation today in announcing Michigan Strategic Fund approval of a range of projects underscoring the state’s innovation in high-tech manufacturing and clean-tech leadership.

“Today’s investments will help Michigan lead the future of high-tech manufacturing and sustainability while growing and diversifying our economy,” said Governor Whitmer. “Together, we will keep getting things done to build on our economic momentum and deliver on the priorities that make a real difference in people’s lives so anyone can ‘make it’ in Michigan.”

Calumet Electronics solidifies Michigan’s semiconductor future with first Package Substrate manufacturing facility in the United States

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Calumet Electronics (Calumet) specializes in the engineering and manufacturing of high-quality Printed Circuit Boards (PCBs) and pioneering Packaged Substrates critical to the semiconductor ecosystem for aerospace and defense. In collaboration with customers and suppliers, Calumet has become an award-winning American owned and operated company, known for its thought leadership and innovative approach to engineering and manufacturing processes.

As one of the industry’s leading manufacturers, Calumet is committed to closing the U.S. technology gap with Asia while supporting and growing its local economy with advancing people into great careers in Michigan’s rural Upper Peninsula.

Calumet’s workforce consists of approximately 350 employees, and continues to hire, across its 160,000 sq. ft. campus located in Calumet, Michigan. The company is working to expand its operation in response to a need from the Department of Defense (DoD) to produce leap-ahead electronics in the United States.

Calumet’s emerging capability will enable next-generation DoD technology in multifunction applications including advanced radar, communications, high speed computing, and artificial intelligence, made possible by advanced packaging of semiconductors. Calumet seeks to stand up a first-of-its-kind package substrate factory in the United States, starting with a new 60,000 sq. ft. manufacturing facility within its existing campus.

The project is expected to generate a total capital investment of up to $50.98 million. Over the next three years, while the company scales its substrate production with training and technology, 270 of the employees will be retained to maintain the standard current production needs. Forty existing employees will receive initial upskilling critical to manufacturing advanced package substrates and highly complex PCB technologies in support of the semiconductor ecosystem and defense complex. The MSF board approved support through a $7.5 million Michigan Business Development Program grant and a 15-year, 100-percent State Essential Services Assessment Exemption with an estimated value of up to $758,877 for its $32,613,252 eligible investment in Eligible Personal Property.

“We extend our gratitude to Governor Whitmer, MEDC CEO Quentin L. Messer, his dedicated team for their tireless effort and unwavering support, and the Michigan Strategic Fund. Additionally, we thank InvestUP, Warner, Norcross & Judd and Marketing Department, Inc. for helping bring this project over the finish line,” said Calumet Electronics President Stephen Vairo. “The funding will allow Calumet Electronics to advance our technology with a primary focus on bringing semiconductor and microelectronics manufacturing back to the United States. We are thrilled about the prospect of expanding our operations and facilities right here in Calumet, MI, creating increased opportunities for career retention, upskilling, and job growth in the Copper Country.”

Calumet Electronics is a key partner in the MEDC’s Semiconductor Talent Action Team and has a proven track record of prioritizing talent attraction, development, and retention to support the next generation of manufacturing in the state of Michigan. This is in conjunction with Michigan Technological University, who graduates the brilliant engineers that power Calumet’s innovation.

Calumet is actively pursuing federal funding to address the needs of the Defense Industrial Base and support the strategic semiconductor and defense goals of the State of Michigan. In response to concerns raised by U.S. defense and commercial OEMs regarding the availability of package substrates produced within the United States, Calumet Electronics may become the primary supplier, potentially even an exclusive supplier to U.S. strategic programs.

This project aligns with Calumet’s long-term strategic plan to become a global leader in producing next-generation technologies. Calumet’s series of successes in producing substrates for advanced packaging, which have passed rigorous customer field testing, underscore the need for the company to prioritize capacity expansion. As a small business, Calumet is committed to making a substantial impact as an all-American Michigan manufacturer in the domestic semiconductor industry, contributing to national defense and bolstering U.S. economic competitiveness, all from the Upper Peninsula of Michigan.

Information on careers with Calumet Electronics can be found at https://www.calumetelectronics.com/greatpeople/

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