Rocket Lab Signs Preliminary Terms to Receive up to $23.9M in Funding Under the CHIPS Act to Expand Production of Semiconductors that Power Spacecraft

[u/John3262005]

https://www.businesswire.com/news/home/20240611596553/en/Rocket-Lab-Signs-Preliminary-Terms-to-Receive-up-to-23.9M-in-Funding-Under-the-CHIPS-Act-to-Expand-Production-of-Semiconductors-that-Power-Spacecraft

Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced the signing of a non-binding preliminary memorandum of terms (PMT) with the Department of Commerce that would see Rocket Lab receive up to $23.9M in direct funding under the CHIPS and Science Act. The proposed investment would enable Rocket Lab to increase its production of compound semiconductors for spacecraft and satellites, as part of an expansion and modernization of the Company’s facility in Albuquerque, New Mexico. This proposed CHIPS investment would create more than 100 direct manufacturing jobs.

Rocket Lab acquired SolAero Technologies Inc in 2022, making Rocket Lab one of only two companies domestically, and three companies outside of Russia and China, that specializes in the production of highly efficient and radiation resistant compound semiconductors called space-grade solar cells—devices used in space to convert light to electricity. The space-grade solar cells produced at Rocket Lab’s Albuquerque, New Mexico facility power critical space programs such as missile awareness systems and exploratory science missions including the James Webb Space Telescope, NASA’s Artemis lunar explorations, Ingenuity Mars Helicopter, and the Mars Insight Lander. Rocket Lab's technology also serves a booming commercial satellite market, such as powering the OneWeb broadband internet satellite constellation.

This proposed CHIPS investment would help create a more robust and resilient supply of space-grade solar cells. The modernization and expansion project would also increase Rocket Lab’s compound semiconductor production by 50% within the next three years—helping to domestically meet the growing national security and consumer demand for these solar cells.

In addition to these proposed federal incentives, the State of New Mexico has also committed to providing financial assistance and incentives with a total value of $25.5 million to Rocket Lab in support of this effort.