Rocket Lab Receives Funding Boost for Compound Semiconductor Production

The U.S. Commerce Department announced on Tuesday that it plans to give Rocket Lab $23.9 million to significantly increase the production of compound semiconductors used in satellites and spacecraft.

Key Points:

• The award aims to create a more reliable supply of space-grade solar cells, which power spacecraft and satellites.
• This funding is expected to boost Rocket Lab’s compound semiconductor production by 50% over the next three years.

Funding Details:

• The funds come from the Biden administration’s $52.7 billion chip manufacturing and research subsidy program.
• The State of New Mexico has pledged $25.5 million in financial assistance and incentives to help Rocket Lab expand its Albuquerque facility.

Background:

• Rocket Lab, founded in 2006 by New Zealander Peter Beck, is one of two U.S. companies that produce space-grade solar cells.
• Commerce Secretary Gina Raimondo emphasized the importance of solar cells for maintaining communication and space technology.

Applications:

• Rocket Lab’s solar cells support various U.S. space programs, including:
  • Missile detection systems
  • The James Webb Space Telescope
  • NASA’s Artemis lunar missions
  • The Ingenuity Mars Helicopter
  • The Mars Insight Lander

Future Prospects:

• Rocket Lab has secured hundreds of millions of dollars in U.S. federal contracts for satellite production and spacecraft launches.
• The investment is also expected to benefit Rocket Lab’s Albuquerque facility expansion and create over 100 manufacturing jobs.

Tax Credit:

• Rocket Lab plans to take advantage of the Department of the Treasury’s investment tax credit, estimated to be worth about $24 billion.