Rocket Lab USA, Inc. will receive $23.9 million in funding from the CHIPS and Science Act. The company signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce to obtain the funds. Rocket Lab plans to use the money to increase production of compound semiconductors for spacecraft and satellites. The company would accomplish this by expanding and modernizing its facility in Albuquerque, New Mexico.
The company specializes in manufacturing highly efficient and radiation resistant compound semiconductors called space-grade solar cells. These cells, which are manufactured at the Albuquerque plant, are employed in space to convert light to electricity. With this new funding, Rocket Lab believes it can increase compound semiconductor production by 50% within the next three years. The company will also receive addition financial assistance and incentives from New Mexico totaling $25.5 million.
What people are saying
In a recent quote, Rocket Lab founder and CEO, Sir Peter Beck, said, "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. For more than two decades the SolAero team, now part of Rocket Lab, has played a crucial 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."
Senator Heinrich, a member of the 2022 Chips and Science Act Conference Committee, added, “This major investment from our CHIPS and Science Act will further solidify New Mexico’s role as a leader in advanced manufacturing and create more than an estimated 100 manufacturing jobs. It will also further cement our state as the best place in America to manufacture novel technologies with emerging space defense applications. For years now, I’ve been proud to bolster New Mexico’s bases, defense research labs, and private industry partners so we can keep excelling in emerging defense fields. That includes supporting the growth of SolAero, now Rocket Lab—a homegrown New Mexico defense technology company that has become an industry leader in manufacturing solar cells for space-based defense systems and commercial satellites. This exciting investment is just the latest downpayment to maintain New Mexico’s longtime leadership in national security and innovation.”
Manufacturers investing in New Mexico
Array begins construction on $50 million solar manufacturing plant in New Mexico
The project will be supported by the Inflation Reduction Act’s production tax credit, as well as $2.5 million in economic assistance from the Local Economic Development Act (LEDA) job-creation fund.
Auto parts supplier spends $99 million to begin manufacturing in New Mexico
The new facility will be located on 30 acres of land, and construction is expected to begin in 2024.
Maxeon Solar Technologies to build $1 billion solar cell and panel manufacturing plant in New Mexico
The complex will have the ability to produce up to 8 million solar panels per year.
Manufacturers receiving funds from the CHIPS Act
Absolics to receive $75 million from the CHIPS Act to support semiconductor manufacturing in Georgia
The company, which is a subsidiary of SKC, manufactures glass substrate, an essential component to produce semiconductors.
Amkor to receive $400 million from the CHIPS Act to build OSAT manufacturing facility in Arizona
Amkor will invest $2 billion into the new facility, creating 2,000 new jobs in the process.
GlobalWafers receives $400 million from CHIPS Act to increase production of silicon wafers in Texas and Missouri
The company signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce to help onshore critical semiconductor wafer production.
Investing in American manufacturing in 2024
This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.