Calumet Electronics And Schmid Group Collaborate To Establish First-Ever US Advanced Substrate Facility

Rhea-AI Summary

Calumet Electronics partners with Schmid Group to pioneer domestic production of advanced packaging substrates in the US. The collaboration aims to scale production capacity, establish a state-of-the-art facility, implement cutting-edge technology, and receive government support for a total capital investment of nearly $50 million. The partnership focuses on workforce development, environmental responsibility, and advancing substrate technology to enhance the nation's capabilities in microelectronics and printed circuit boards.

Positive

• Dedicated US-based advanced technologies facility established by Calumet for advanced substrate production.
• Implementation of cutting-edge process and production technology to produce mSAP, SAP, and embedded trace on a single platform.
• Collaboration between Calumet and Schmid to develop a modular, space-efficient approach for environmental conservation and cost savings.
• Total capital investment projected to be nearly $50 million, demonstrating commitment to strengthening the US supply chain for microelectronics and PCBs.
• Significant investment from the US Department of Defense under DPA Title III program to enhance manufacturing capabilities and contribute to national security.
• Focus on upskilling the US workforce through technological advancements in advanced packaging and substrate manufacturing.

Negative

• None.

Insights

Market Research Analyst

The strategic partnership between Calumet Electronics and Schmid Group and the subsequent development of a US-based advanced substrate facility, represent a strategic shift in the electronics manufacturing landscape. The move towards onshoring of advanced packaging substrate production is a response to the increasing need for supply chain resilience, particularly in the high-tech and defense sectors. This initiative could lead to reduced dependencies on foreign suppliers and potentially shorten lead times for critical components, thus enhancing the agility of US-based companies in the global market.

From an investment perspective, the significant capital investment of nearly $50 million, bolstered by governmental support, signals confidence in the domestic growth of the microelectronics sector. The market could react favorably to this development, given the current emphasis on domestic manufacturing capabilities. The project may also serve as a catalyst for further investments in the sector, potentially benefiting suppliers, contractors and the broader ecosystem involved in electronics manufacturing.

Financial Analyst

The near $40 million grant from the US Department of Defense under the DPA Title III Program to Calumet Electronics is a substantial financial endorsement that could have positive implications for the company's valuation and financial stability. The grant not only underscores the strategic importance of the project but also provides the financial muscle required to achieve the technological advancements in substrate production. This infusion of capital will likely be scrutinized by investors for its effective utilization and the expected return on investment in the form of enhanced production capabilities and potential market share gains.

Furthermore, the announcement of Schmid Group's pursuit of a business combination with Pegasus Digital Mobility Acquisition Corp. to become a publicly listed company could attract investor interest. The market will closely monitor the progress of this transaction for its impact on Schmid's valuation and its strategic implications for Calumet's operations and competitive positioning.

Environmental Analyst

The collaborative R&D efforts focusing on a modular, space-efficient approach to advanced substrate production address the growing demand for environmental and fiscal responsibility in manufacturing. By maximizing process efficiency and minimizing the cleanroom footprint, Calumet and Schmid are setting a precedent that could become an industry norm. This approach reflects a shift towards sustainable manufacturing practices that can reduce operational costs and environmental impact, which is increasingly valued by consumers, investors and regulators alike.

The environmental benefits of such initiatives may enhance the corporate image of both companies and could lead to potential long-term cost savings. However, the actual environmental impact and the cost-effectiveness of the new technologies will need to be empirically validated once the facility is operational. Stakeholders will be keen to assess the balance between environmental stewardship and financial performance.

FREUDENSTADT, Germany--(BUSINESS WIRE)-- Calumet Electronics (Calumet), a leading American printed circuit board manufacturer, is pioneering the domestic production of advanced packaging substrates. The current development and onshoring of this technology are the direct result of a strategic partnership with Schmid Group (Schmid), a top global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries. This collaboration marks a significant step in advancing substrate technology within the United States (US) and complements the recent government grant awarded to Calumet by the US Department of Defense under DPA Title III.

Through this strategic partnership, Calumet and Schmid are working collaboratively to scale domestic production capacity for advanced substrates. Schmid is providing innovative equipment, while Calumet is taking the lead in expanding its manufacturing capabilities. Together, they are aligning their efforts with construction milestones to establish the first-ever US-based advanced substrate facility.

Key Highlights:

1. Dedicated US-Based Advanced Technologies Facility: Calumet is currently standing up a 60,000 sq. ft. state-of-the-art manufacturing facility dedicated to advanced substrate production. This landmark facility represents a significant milestone as the first of its kind in the US, poised to advance substrate technology and enhancing the nation’s capabilities in advanced packaging.
2. Enabling Next-Gen Technology: The project will implement cutting-edge process and production technology, enabling the production of mSAP, SAP and (ET) embedded trace on a single versatile platform.
3. Environmental and Fiscal Responsibility: Calumet and Schmid’s R&D teams are collaborating across enterprises to develop a modular, space-efficient approach that maximizes environmental conservation, process efficiency, and cost savings while minimizing costly cleanroom footprints.
4. Substantial Capital Investment: The project is projected to attract a total capital investment of nearly $50 million. This substantial investment underscores the dedication to strengthening the US supply chain for microelectronics and printed circuit boards.
5. Government Support: Calumet received a significant investment from the US Department of Defense, which awarded them $39.9 million via the DPA Title III Program. This grant empowers Calumet, in collaboration with Schmid, to enhance manufacturing capabilities and contribute to national security.
6. Workforce Development: The partnership between Calumet and Schmid is driving technological advancements while focusing on upskilling the US workforce. By establishing advanced packaging and substrate manufacturing within the US, this collaboration creates sustainable jobs and strengthens domestic expertise.

At the forefront of the next-gen technology, advanced packaging and substrates are driving advancements in miniaturization, integration, performance, thermal management, high frequency capabilities, speed, and energy efficient components and systems. Engineered to cater to the specific requirements of high-performance systems, advanced substrates play a pivotal role in enhancing functionality and efficiency. This is poised to shape the future of advanced packaging technology in the US, uniting these two industry leaders for this purpose.

“The partnership between Calumet and Schmid signals a significant leap forward in advanced packaging and substrate technology, further enhancing the United States’ competitive position in the global market,” affirmed Stephen Vairo, President, and Chief Executive Officer of Calumet Electronics.

Christian Schmid, Schmid Group Chief Executive Officer, added “We are pleased to partner with Calumet to streamline the traditional lab-to-fab transition, in alignment with our shared mission as innovators and sustainable partners to the industry. We will create a lighthouse project in Calumet for the reshoring of technology and production to the US.”

Schmid, together with its consolidated subsidiaries, is currently in the process of pursuing a business combination with Pegasus Digital Mobility Acquisition Corp. (“Pegasus”, NYSE: PGSS), a special purpose acquisition company formed by StratCap, LLC that is expected to result in Schmid becoming a publicly listed company in New York.

For more information: www.schmid-group.com; www.calumetelectronics.com; www.pegasusdigitalmobility.com

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute "forward-looking statements." All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the "Risk Factors" section of the Company’s registration statement and final prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

About Pegasus Digital Mobility Acquisition Corp.

The Company is a blank check company incorporated as a Cayman Islands exempted entity. The Company was founded by StratCap, an investment management organization focused on digital economy investments. The Company is a special purpose acquisition company formed for the purpose of effecting a business combination with one or more businesses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240220480313/en/

Investor Relations

investor-relations@pegasusdm.com

Source: Pegasus Digital Mobility Acquisition Corp.

FAQ

What is Calumet Electronics partnering with Schmid Group to pioneer?

Calumet Electronics is partnering with Schmid Group to pioneer the domestic production of advanced packaging substrates in the US.

What is the total capital investment projected for the project?

The project is projected to attract a total capital investment of nearly $50 million.

What type of technology will be implemented in the project?

Cutting-edge process and production technology will be implemented to enable the production of mSAP, SAP, and embedded trace on a single versatile platform.

What government support did Calumet receive?

Calumet received a significant investment from the US Department of Defense, which awarded them $39.9 million via the DPA Title III Program.

What is the focus of the partnership between Calumet and Schmid?

The partnership focuses on upskilling the US workforce, environmental responsibility, and advancing substrate technology to enhance the nation's capabilities in microelectronics and printed circuit boards.