Rocket Lab, a leading aerospace manufacturer, is set to receive approximately $24 million in federal funding to bolster the production of its compound semiconductors. These semiconductors, also known as solar cells, play a crucial role in providing power to satellites and spacecraft. The funding will be allocated to Rocket Lab’s subsidiary, SolAero Technologies, with the aim of increasing compound semiconductor production by 50% over the next three years.
Rocket Lab-made solar cells have already been utilized in numerous space missions, including powering the James Webb Space Telescope and OneWeb’s satellite internet constellation. The reliability and efficiency of these solar cells have made them indispensable for critical scientific research and commercial applications alike.
The U.S. Commerce Department recently announced a non-binding preliminary funding agreement, highlighting the significance of solar cells in sustaining communication and space technology. Commerce Secretary Gina Raimondo emphasized that the proposed award would benefit the military, NASA, and the commercial space industry by ensuring access to specialty semiconductors.
In addition to the federal funding, the state of New Mexico, where SolAero is based, has committed to offering financing and incentives worth $25.5 million. This support will enable Rocket Lab to expand its facilities in Albuquerque and generate over 100 new manufacturing jobs. The combined federal and state funding will accelerate the company’s growth and contribute to the local economy.
The funding for Rocket Lab’s compound semiconductor production stems from the CHIPS and Science Act, signed into law by President Joe Biden in 2022. This legislation aims to revitalize domestic semiconductor manufacturing and enhance the resilience of the domestic supply chain. It recognizes the importance of semiconductors in various industries and seeks to strengthen America’s position in this critical sector.
Rocket Lab’s acquisition of SolAero in 2022 for $80 million solidified its position as one of only two companies in the United States specializing in the production of space-grade, radiation-resistant compound semiconductors. SolAero operates a state-of-the-art manufacturing facility spanning approximately 115,000 square feet. The company’s vertical integration allows it to not only manufacture solar cells but also produce solar panels and power modules, further enhancing its capabilities.
With the infusion of federal and state funding, Rocket Lab is poised to expand its production capacity, meet the growing demand for high-quality solar cells, and contribute to the advancement of space technology. This investment will not only benefit Rocket Lab but also bolster the domestic semiconductor industry, fortify national security, and support the exploration and utilization of space for scientific and commercial purposes.
