Rocket Lab receives up to $23.9 million for the CHIPS Act funding in preliminary agreement for semiconductor production for spacecraft and satellites in Albuquerque
Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, welcomed government and community leaders at its space-grade solar cells manufacturing facility in Albuquerque, New Mexico, on Monday, July 15, 2024, to celebrate Rocket Lab’s signed preliminary agreement under the U.S. CHIPS and Science Act.
Rocket Lab executive leadership, Congressional leaders and state and local officials took part in the event to celebrate the preliminary agreement which would assist in the modernization and expansion project to increase the Company’s compound semiconductor production for spacecraft and satellites, helping to domestically meet the growing national security and consumer demand for these solar cells.
Rocket Lab’s solar cell facility has been a technology hub in Albuquerque for the past 25 years, employing more than 370 employees manufacturing space solar technology that has powered over 1,100 satellites in orbit. To date, Rocket Lab has produced more than four megawatts of solar cell energy — equivalent to powering 14,400 miles driven by an electric car.
The proposed funding will also allow Rocket Lab to bring more than 100 direct manufacturing jobs to Albuquerque in addition to expanding and modernizing its facility. The modernization and expansion project will increase Rocket Lab’s compound semiconductor production by 50% within the next three years powering critical space programs, missile awareness systems, exploratory science missions. To date Rocket Lab’s technology has enabled critical space missions such as the James Webb Space Telescope, NASA’s Artemis lunar explorations, Ingenuity Mars Helicopter, and the Mars Insight Lander, and served as a booming commercial satellite market, including powering the OneWeb broadband internet satellite constellation.
“It is an honor to celebrate Rocket Lab’s proposed CHIPS Act funding at our semiconductor manufacturing facility in New Mexico alongside our esteemed state and national officials,” says Rocket Lab’s Chief Financial Officer, Adam Spice. “This strategic investment will empower Rocket Lab to significantly expand and modernize our operations, bolstering our economic footprint and technological leadership in New Mexico, while adding more than one hundred manufacturing jobs to the U.S. economy in addition to reinforcing our national security.”
“Two years ago, I served on the conference committee of Senate and House members that finalized what eventually became the CHIPS and Science Act. I fought hard to pass the bill because I knew it would have a transformative impact here in New Mexico,” said U.S. Senator Martin Heinrich. “This investment of up to $23.9 million from the CHIPS and Science Act will create 100 new advanced manufacturing jobs in Albuquerque. These new jobs come alongside the clean energy and microelectronics manufacturing boom that we have spurred through both the CHIPS Act and our landmark Inflation Reduction Act. We are making New Mexico one of the best places in America to manufacture advanced technologies — and by doing so, we’re creating hundreds of new, good-paying jobs that New Mexicans can build their families around in their home communities.”
“Thanks to the CHIPS and Science Act, New Mexico is leading the nation in driving innovation and promoting tech advancement. The investment in Rocket Lab in Albuquerque will create new jobs in advanced manufacturing, boost the economy, and help meet the challenges of the future,” said U.S. Senator Ben Ray Luján. “I was proud to welcome this investment alongside the New Mexico Congressional Delegation, the Biden-Harris administration, and Rocket Lab leadership.”
“Thanks to President Biden’s CHIPS and Science Act, Rocket Lab will have 100 new manufacturing jobs in the semiconductor industry,” U.S. Congresswoman Melanie Stansbury said. “This industry is booming, and I’m proud that New Mexico is a leader in science and technology innovation. The expansion of Rocket Lab to New Mexico and modernization of their facility means more economic opportunities for high tech workers and their families in New Mexico.”
“The Economic Development Department is proud to support Rocket Lab’s expansion. In the last 25 years, they’ve been committed to investing in New Mexico and their local community, creating manufacturing jobs, and providing internship and educational opportunities for the next generation of New Mexicans,” Acting Cabinet Secretary for the New Mexico Economic Development Department Mark Roper said.
“Albuquerque continues to be a great home for innovation and advanced manufacturing, and we appreciate President Biden’s investments to help build a thriving, green economy in New Mexico,” said Albuquerque Mayor Tim Keller. “This expansion will bring good-paying jobs to our community and create more diverse career paths for our families.”
“This investment demonstrates that Albuquerque is a prime location for developing cutting-edge technology,” said City of Albuquerque Economic Development Director Max Gruner. “We have state-of-the-art research facilities, educational institutions, and a skilled workforce to support this growth.”
