Dive Brief:

• Cellular module manufacturing startup Eagle Electronics will build an advanced electronics manufacturing facility in Solon, Ohio, according to a Dec. 3 press release.

• Eagle Electronics raised $14 million, led by the state-focused venture fund O.H.I.O. Fund, to build the facility. The Minnesota-based company has secured multiple customer commitments so far.

• The facility will leverage surface-mount technology manufacturing equipment to produce chip components, according to the release.

Dive Insight:

The startup’s first production facility in the U.S. is part of Eagle Electronic’s strategy to strengthen the domestic advanced electronics supply chain.

Established in March, Eagle Electronics aims to help customers better comply with federal regulations that limit chip inputs from some foreign countries, including China.

This includes helping companies comply with the Biden administration’s proposed Connected Vehicle rule, which would ban vehicle connectivity hardware and software or automated driving software that could allow foreign entities, specifically China and Russia, to access sensitive data or operate vehicles remotely.

"Our goal is to set a new standard for electronics manufacturing in the U.S., combining the most advanced automated manufacturing and testing technology with rigorous hardware and software cyber-security testing throughout the supply chain,” co-founder and CEO TJ Dembinski said in the release. “This offering will allow Eagle to onshore critical knowledge and essential technologies, all while continuing to cement the United States' leadership in the chip industry.”

Eagle Electronics established its first onshoring partnership with Quectel, one of the world's largest [Internet of Things] cellular module manufacturers. The China-based company holds about 37% of the global IoT cellular module market share by shipment volume, according to market analyst firm Counterpoint Research.

To bring the technology to the U.S., Quectel will license its manufacturing technology to Eagle Electronics, as its customers need access to cyber-secure cellular modules that are made in the U.S., President and Chief Sales Officer Norbert Muhrer said in the release.

UK-based Cherish Health will be one of the first customers at the Ohio facility, part of its goal to shorten the supply chain for its health and safety monitoring products. 

Eagle Electronics is also working with software company Finite State to produce, compile and audit all firmware for its devices to ensure all connected technology is secure, according to the release.