Calumet Electronics Corp. plans to invest $51 million in the development of the nation’s first substrate factory.

At the Michigan Strategic Fund board meeting Tuesday, it was announced that the Calumet Township company is set to move forward with its plans to construct the new manufacturing facility.

The company’s project plan is to add a substrate factory to its existing manufacturing operation, which will position the company to apply for U.S. Department of Defense contracts and grants.

The project involves the retention of 269 jobs, increasing the skills of up to 40 of those retained jobs, and a capital investment of up to $50,984,840.

The new 60,000-square-foot manufacturing factory, adjacent to its existing operations, will be the first of its kind in the United States, according to the Michigan Economic Development Corporation.

The facility would include Class 1000 Clean rooms to expand organic substrate production for the nation, particularly as it relates to communication and electronic warfare. The facility would house equipment to meet the increasing demand of state-of-the-practice and state-of-the-art organic substrates. Organic substrates are used as base materials in semiconductor applications and manufacturing. Unlike inorganic substrates, the organic substrates are made of organic small molecules or polymers, states Transparency Market Research’s website. Packaging materials are not only used for mechanical or environmental safety, but also act as electronically conductive interconnections between semiconductors and printed circuit boards.

Calumet Electronics specializes in the engineering and manufacturing of high-quality PCBs. InvestUP said 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, underscores the need for the company to prioritize capacity expansion, which includes additional space, equipment and workforce training.

The company is working to expand its operation in response to demand from the DoD for producing leap-ahead electronics in the United States. As one of the industry’s leading manufacturers, the electronics firm is committed to closing the U.S. technology gap with Asia.

As a small business, Calumet is committed to making a substantial impact as an all-American manufacturer in the domestic semiconductor industry, contributing to national defense and bolstering U.S. economic competitiveness, all from the Upper Peninsula of Michigan.

Calumet Electronics 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, a Tuesday MEDC release said.

In response to concerns raised by U.S. defense and commercial original equipment manufacturers 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.

Included in Calumet Electronics’ $51 million investment, the MSF board approved support through a $7.5 million Michigan Business Development Program grant and a 15-year, 100% 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.