Rocket Lab Corp (RKLB.O), the launch services and space systems company headquartered in Long Beach, California, said it will expand U.S. semiconductor manufacturing to support national security space missions after receiving $23.9 million from the Department of Commerce.
The funding, awarded under the CHIPS and Science Act, will help the company boost production of space-grade solar cells and electro-optical sensors, technologies considered critical for spacecraft and defense programs. Rocket Lab is one of only two U.S. firms capable of producing high-efficiency, radiation-hardened compound semiconductors.
The company said the investment will double its production capacity of compound semiconductors and solar cells to nearly 35,000 wafers per month over the next five years, compared with about 20,000 today. The expansion is part of broader efforts to strengthen domestic supply chains and reduce reliance on overseas suppliers for advanced space technologies.
The move builds on Rocket Lab’s $275 million acquisition of Geost, an electro-optical payload provider with operations in Arizona and Virginia. Together, the projects represent several hundred million dollars of investment aimed at strengthening the U.S. semiconductor base and providing spacecraft manufacturers with domestically sourced technologies.
“Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico,” said Brad Clevenger, Rocket Lab’s vice president of space systems. “These latest investments will expand that production capacity, strengthen supply chains, create new jobs, and develop economic opportunities across the states where we operate.”
Rocket Lab said the expansion will increase its U.S. workforce to more than 2,000 employees, adding roles in California, Colorado, Maryland, New Mexico, Mississippi, Arizona and Virginia. The company also plans to accelerate delivery of integrated spacecraft systems tailored for U.S. national security customers.
Commerce Secretary Howard Lutnick said the award underscored Washington’s focus on securing leadership in space and semiconductor technologies. “Rocket Lab’s investment will help cement our dominance in space while expanding opportunities for workers across the country,” he said.
Rocket Lab’s solar cells have been used on high-profile missions including NASA’s James Webb Space Telescope, the Artemis lunar program, the Ingenuity Mars Helicopter and the Mars Insight Lander. Founded in 2006, the company also manufactures the Electron small orbital rocket and is developing the larger Neutron launch vehicle for satellite constellations.
