Rocket Lab Secures $23.9M CHIPS Act Funding to Boost Semiconductor Production in New Mexico

Rocket Lab USA, a leader in launch services and space systems, has secured a preliminary agreement for up to $23.9 million in funding under the U.S. CHIPS and Science Act; enabling Rocket Lab to expand and modernize its semiconductor production facility in Albuquerque, New Mexico, which specializes in the manufacture of space-grade solar cells.

The funding, provided by the U.S. Department of Commerce, is intended to increase Rocket Lab’s compound semiconductor production by 50% over the next three years to supply the U.S. of highly efficient, radiation-resistant solar cells, which are critical for powering spacecraft and satellites used in both national security and commercial applications.

In addition to federal support, the State of New Mexico has committed $25.5 million in financial incentives to further support Rocket Lab's expansion. This combined investment is expected to create over 100 new manufacturing jobs, contributing to the growth of New Mexico's space economy.

Rocket Lab's expansion comes at a crucial time as the U.S. seeks to strengthen its semiconductor supply chains in the face of global competition and rising demand. The solar cells produced at Rocket Lab’s facility are integral to several key U.S. space programs, including missile detection systems and NASA's Artemis lunar missions. These semiconductors also power a growing commercial satellite market, including constellations like OneWeb's broadband internet satellites.

Rocket Lab CEO Sir Peter Beck highlighted the importance of this investment, stating, "Semiconductors are central to modern life, to our economy, and to America's future. We are proud to be strengthening that future with the support of the CHIPS Office by expanding our production facilities to meet the growing demand for the semiconductors that power the nation's most critical science, defense, and commercial space missions."

As New Mexico solidifies its role as a center for advanced manufacturing, this investment catalyzes economic growth and reinforces the nation's dominance in space technology.