US Chip Manufacturing Gets a Major Boost: Calumet Electronics and Schmid Group Join Forces on Advanced Substrates

The race to strengthen America’s semiconductor supply chain just shifted into higher gear. Calumet Electronics, a major US printed circuit board manufacturer, has secured a $39.9 million grant from the US Department of Defense under the DPA Title III Program and is channeling that investment into something the country has never attempted before—a fully domestic advanced substrate production facility.

The Missing Link in US Chip Production

Advanced packaging substrates are the unsung heroes of modern electronics. They enable miniaturization, enhance thermal management, support high-frequency operations, and improve energy efficiency in everything from defense systems to next-generation consumer devices. Yet despite their critical importance, the US has relied heavily on imports. That’s about to change.

Calumet Electronics is partnering with Schmid Group, a global leader in manufacturing solutions for electronics and high-tech industries, to close this gap. Together, they’re building what will be the nation’s first purpose-built facility dedicated to advanced substrate production—a 60,000 square foot state-of-the-art manufacturing complex that represents a watershed moment for domestic capability.

The Investment and the Vision

The project carries a hefty price tag: nearly $50 million in total capital investment. But the numbers tell a deeper story. This isn’t just about manufacturing capacity—it’s about reshoring critical technology, creating skilled jobs, and reducing US dependence on overseas suppliers.

The facility will enable production of multiple substrate types—mSAP, SAP, and embedded trace (ET) technology—all on a single, flexible platform. Schmid will supply the cutting-edge manufacturing equipment and process expertise, while Calumet takes the operational lead in ramping up production capabilities. This collaboration is timed to align with construction milestones, with both companies committed to scaling operations efficiently.

Sustainability Meets Economics

One of the partnership’s defining features is its focus on sustainability and cost efficiency. Calumet and Schmid’s research teams are jointly designing a modular, space-efficient manufacturing approach that maximizes environmental conservation while minimizing the expensive cleanroom footprints typically required in advanced packaging production. The result: lower operational costs, reduced environmental impact, and faster time-to-production.

Building the Workforce of Tomorrow

Beyond equipment and facilities, this collaboration emphasizes human capital. By establishing advanced substrate manufacturing on US soil, the partnership creates pathways for workforce development and upskilling. These are high-value manufacturing jobs that strengthen domestic expertise and technical capabilities across the industry.

“This collaboration represents a critical inflection point for US advanced packaging technology,” said Stephen Vairo, President and CEO of Calumet Electronics, highlighting how the partnership positions the country to compete more effectively in global markets. Schmid Group’s leadership echoed this sentiment, framing the venture as a “lighthouse project” that demonstrates the viability of reshoring complex semiconductor technology to American soil.

What This Means for the Industry

The establishment of this first-ever US-based advanced substrate facility signals that onshoring semiconductor technology is not just feasible—it’s happening now. With government backing, private capital, and collaboration between two industry innovators, Calumet Electronics and Schmid Group are setting a template for future domestic semiconductor expansion.