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Rocket Lab solar cells. Photo: Rocket Lab

The U.S. Department of Commerce has finalized agreements with Rocket Lab and BAE Systems Electronic Systems for funding under the CHIPS program for investment in semiconductors used in satellites. 

Rocket Lab will receive up to $23.9 million to invest in its supply chain for space-grade solar cells that power spacecrafts and satellites. Rocket Lab is one of two domestic manufacturers of radiation resistant compound semiconductors due to its 2022 acquisition of SolAero Technologies. These space-grade solar cells are used in U.S. space programs including missile awareness systems, the James Webb Space Telescope, and NASA’s Artemis program. 

Rocket Lab is expanding its facility in Albuquerque, New Mexico, to increase production by 50% in the next three years. The investment, which this funding will support, is expected to create more than 100 jobs.

“We’re proud to be a part of this effort to revitalize and grow U.S. domestic semiconductor manufacturing capability. This award will help to ensure U.S. leadership in compound semiconductor manufacturing capability while reenforcing Rocket Lab’s position as a leader in space-grade solar cell production,” said Brad Clevenger, vice president of Rocket Lab Space Systems. “The investment will enable Rocket Lab to expand production, create highly skilled manufacturing jobs and generate economic and workforce development activity in New Mexico.”

BAE Systems’ award of up to $35.5 million will support modernizing the company’s Microelectronics Center in Nashua, New Hampshire. The company plans to quadruple its production capacity for Monolithic Microwave Integrated Circuit (MMIC) chips, which are critical components for advanced military aircraft and commercial satellite systems. 

The awards announced Nov 25 come after the previously signed agreements announced in December 2023 with BAE Systems and June 2024 with Rocket Lab. The Dept. of Commerce will issue funds when the companies complete project milestones. The federal investment is through the CHIPS Act, which is aimed at strengthening the U.S. supply chain and manufacturing base for computer chips.

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