Rocket Lab Will Double U.S. Semiconductor Production
Space Company Expands Manufacturing to Meet National Security Demand
Rocket Lab Corporation is boosting its U.S. investments to expand semiconductor manufacturing capacity and provide supply chain security for space-grade solar cells and electro-optical sensors for national security space missions, the company announced Friday. The Trump Administration will support these investments with a $23.9 million award through the Department of Commerce, part of the CHIPS and Science Act that ensures U.S. leadership in space-grade semiconductor technology.
"Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico."
Brad Clevenger,
Rocket Lab's capital investments over the next five years are expected to strengthen the company's market position as a leading satellite manufacturer, components supplier, and end-to-end mission provider for commercial and national security space missions. The company plans to double production capacity of compound semiconductors and space-grade solar cells, from 20,000 wafers to nearly 35,000 wafers per month.
"Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico. These latest investments will expand that production capacity, strengthen supply chains, create new jobs, and develop economic opportunities across the states where we operate," said Brad Clevenger, Rocket Lab VP of Space Systems.
Rocket Lab is one of only two companies in the United States that specialize in the production of high efficiency, radiation hardened, space-grade compound semiconductors. The company's semiconductors have powered major space missions including the James Webb Space Telescope, NASA's Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander.
“This administration is taking historic actions to encourage companies like Rocket Lab to invest in American ingenuity and innovation,” said U.S. Secretary of Commerce Howard Lutnick. “Rocket Lab’s investment will help cement our dominance in space while expanding opportunities for workers across the country.”
The expansion comes as part of broader U.S. investments that include a $275 million acquisition of Geost, an electro-optical payload provider based in Tucson, Arizona and northern Virginia. Combined, these multi-hundred million-dollar investments will strengthen America's semiconductor industrial base and invigorate industry innovation for U.S. commercial and national security satellite missions.
The company expects the investments to drive economic growth in California, Colorado, Maryland, New Mexico, Mississippi, Arizona and northern Virginia, as it expands its U.S. based headcount to more than 2,000 employees.
Our Take
This expansion addresses critical national security needs by strengthening domestic semiconductor supply chains for space applications. With only two U.S. companies producing space-grade semiconductors, increasing production capacity helps reduce dependence on foreign suppliers for sensitive military and intelligence satellite programs.
The investment also supports the broader CHIPS Act goal of rebuilding American semiconductor manufacturing leadership.