The Department of Commerce announced today it has reached a preliminary agreement with Rocket Lab, the parent company of space power provider SolAero Technologies Corp., for up to $23.9 million in direct funding under the CHIPS and Science Act to expand the production of compound semiconductors that power spacecrafts and satellites.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal with Rocket Lab – which is headquartered in Albuquerque, New Mexico – would increase the company’s compound semiconductor production by 50 percent within the next three years. The Commerce Department said the investment would also create over 100 direct manufacturing jobs.
Rocket Lab is only one of two companies in the United States that specialize in the production of compound semiconductors called space-grade solar cells – which are used in space to convert light to electricity.
“Solar cells are important for keeping our communication and space technology powered and operational, and this proposed award would help our military, NASA, and our commercial space industry have access to the specialty semiconductors they need to keep our country safe and continue to lead in scientific discoveries and space commerce,” Secretary of Commerce Gina Raimondo said in a press release.
“Thanks to President Biden’s leadership and this proposed CHIPS investment, the United States is meeting the growing demand for these semiconductors while helping to diversify America’s chip manufacturing capabilities and creating new, quality jobs for workers in New Mexico,” Raimondo added.
Rocket Lab’s technology has helped to power U.S. space programs such as “missile awareness systems and exploratory science missions, including the James Webb Space Telescope, NASA’s Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander,” according to the press release.
The company’s technology also serves a growing commercial satellite market, with over one thousand satellites in orbit powered by Rocket Lab solar products.
In New Mexico, Rocket Lab will partner with New Space New Mexico (NSNM) – a nonprofit dedicated to accelerating the pace of space innovation. As part of this partnership, Rocket Lab will contribute $2 million over the next three years and allow access to its equipment, services, and personnel.
“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 growing demand for the semiconductors that power the nation’s most critical science, defense, and commercial space missions,” said Rocket Lab founder and CEO Peter Beck.
“For more than two decades our team has played an important role in the domestic production of semiconductors. This program is a continuation of our commitment to ensuring resilient U.S. supply chains and creating highly productive local jobs,” Beck said.
The next step for the Commerce Department after signing the preliminary agreement is to conduct due diligence on Rocket Lab’s proposed project, followed by negotiation of a final award agreement.
