China’s Quectel is one of the world’s largest manufacturers of IoT cellular modules, a key chip component, with nearly a 40% market share. Now it’s licensing out its manufacturing tech and source code to an Ohio-based startup called Eagle Electronics, in a reversal of how these cross-border relationships have traditionally worked.
Why it matters: This reflects the U.S. onshoring trend for semiconductors, which is expected to intensify if President-elect Trump makes good on his threat to put new tariffs on China-made products.
Driving the news: Eagle Electronics was formed by venture capitalists Mark Kvamme (chairman) and TJ Dembinski (CEO), and tells Axios that it’s raised $14 million in initial capital led by their Ohio Fund, with Asymmetric Capital Partners also participating.
- It’s subleased space in a Cleveland suburb to install a pair of lines that should be producing by next March. After that, it hopes to move into its own facility.
- Quectel will send around 30 employees to Ohio for two months to train new Eagle workers, many of whom are being sourced via partnerships with local community colleges.
- Applications including everything from hunting cameras to vehicle telematics.
This article first appeared in Axios on December 3, 2024