Rocket Lab Boosts U.S. Semiconductor Investment, Securing National Security Space Missions
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Rocket Lab significantly expands U.S. semiconductor capacity and supply chain security for critical space missions, backed by $23.9 million in government funding.
Long Beach, Calif. – August 22, 2025 – Rocket Lab Corporation, a global leader in launch services and space systems, is substantially increasing its domestic semiconductor production capabilities. This strategic move aims to enhance supply chain security for vital space-grade solar cells and electro-optical sensors, crucial for national security space missions. The initiative is supported by a $23.9 million award from the Department of Commerce, funded thru the CHIPS and Science Act, reinforcing America’s leadership in advanced semiconductor technology for space applications.
Strengthening Domestic Space capabilities
In response to a growing demand for a secure and robust domestic supply chain for space-grade components, Rocket Lab’s substantial capital investments over the next five years are poised to solidify its market position. The company is committed to strengthening its role as a leading satellite manufacturer, component supplier, and end-to-end mission provider for both commercial and national security space endeavors. Rocket lab stands out as one of onyl two U.S.companies specializing in the production of high-efficiency, radiation-hardened, space-grade compound semiconductors.
This expansion builds upon Rocket Lab’s existing U.S. growth strategies and is further amplified by its recent $275 million acquisition of Geost, a key electro-optical payload provider with operations in Arizona and northern Virginia. These combined investments, totaling hundreds of millions of dollars, are designed to fortify America’s semiconductor industrial base and stimulate innovation across the U.S. aerospace sector, particularly for commercial and national security satellite missions.
Key Investment Outcomes for U.S. Space Sector
Through these important investments, Rocket Lab anticipates several key advancements:
- Doubled Production Capacity: The company expects to nearly double its production capacity for compound semiconductors and space-grade solar cells, increasing from 20,000 to approximately 35,000 wafers per month.
- Domestic Technology access: U.S. spacecraft manufacturers and the broader aerospace industry will gain enhanced access to domestically produced, cutting-edge semiconductor and electro-optical technologies.
- Accelerated National Security Missions: Rocket Lab will improve its capacity to rapidly deliver integrated spacecraft systems specifically designed for U.S. national security requirements.
- Economic Growth and Job Creation: The expansion is projected to drive economic growth across California, Colorado, Maryland, New Mexico, Mississippi, Arizona, and Virginia, creating over 2,000 new U.S.-based jobs.
“Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico,” stated Rocket Lab’s Vice president of Space Systems, brad Clevenger. “These latest investments will expand that production capacity, strengthen supply chains, create new jobs, and develop economic opportunities across the states where we operate.”
Echoing this sentiment, U.S. Secretary of Commerce Howard Lutnick remarked, “this governance is taking historic actions to encourage companies like Rocket Lab to invest in American ingenuity and innovation. Rocket Lab’s investment will help cement our dominance in space while expanding opportunities for workers across the country.”
Rocket Lab’s solar cells have demonstrably powered some of the most groundbreaking space missions, including the James Webb Space Telescope, NASA’s Artemis lunar explorations, the Ingenuity mars Helicopter, and the Mars Insight Lander. This track record highlights the company’s pivotal role in advancing space industry innovation and ensuring U.S. supply chain security.
Rocket Lab,founded in 2006 and headquartered in Long Beach,California,is an integrated space company with a proven record of mission success. The company provides reliable launch services, satellite manufacturing, spacecraft components, and on-orbit management solutions, making space access faster, easier, and more affordable.Rocket Lab’s Electron launch vehicle is the second most frequently launched U.S. rocket annually, having delivered over 190 satellites to orbit.The company is also developing the larger Neutron launch vehicle for constellation deployment.
Rocket Lab Media Contact: Murielle Baker [email protected]
