Rocket Lab USA (RKLB, Financial) shares rallied more than 8% on Tuesday following the approval of a CHIPS Act Grant. Through this Grant, the company will receive $23.9 million under the CHIPS & Science Act to upgrade its semiconductor operation in Albuquerque, New Mexico.
The funding will finance Rocket Lab's production line, addressing the growing market for efficient solar cells for satellites operating in harsh conditions. It also supports the company through its commitment as a key economic pillar in developing the American semiconductor and space industries in New Mexico.
Brad Clevenger, VP of Rocket Lab Space Systems, highlighted the grant's importance. It would make the US a leader in compound semiconductor manufacturing, while Rocket Lab would "play an increased role in developing space-grade solar cells." He noted that the funding would spur both the actual and virtual Creation of skilled manufacturing jobs and workforce development across the region.
Rocket Lab's increased throughput supports the company's niche role in the US market as one of the two domestic players serving high-reliability, highly efficient solar-cell needs for space-bound hardware. This initiative dovetails with broader national objectives to improve the internal capacity for producing semiconductors as global competition intensifies.
