Rocket Lab Expands U.S. Investments to Boost Semiconductor Manufacturing and National Security Programs
Rocket Lab Corporation , a recognized global leader in launch services and advanced space systems, has announced a significant expansion of its U.S. operations with a focus on semiconductor manufacturing and national security technologies. The company revealed that it will ramp up investments in order to enhance the domestic production of space-grade solar cells and electro-optical sensors—two critical components for spacecraft and satellite missions.
This initiative is being directly supported by the Trump Administration through a $23.9 million award from the U.S. Department of Commerce. The funding, made possible under the CHIPS and Science Act, underscores the federal government’s commitment to strengthening America’s leadership in semiconductor technology and ensuring a resilient supply chain for space programs that underpin national defense and scientific exploration.
Strengthening Domestic Semiconductor Capabilities
As the demand for robust and secure space technologies continues to rise, Rocket Lab’s investments over the next five years are positioned to significantly reinforce the nation’s space-grade semiconductor supply chain. The company is one of only two U.S. firms specializing in the production of high-efficiency, radiation-hardened compound semiconductors—an essential technology for spacecraft durability and reliability in harsh space environments.
By expanding its manufacturing capabilities, Rocket Lab aims to further its standing as a trusted satellite manufacturer, components supplier, and end-to-end mission provider for both commercial and government space missions.
Building on Strategic Acquisitions
The new capital investment builds on Rocket Lab’s broader expansion strategy, which already includes the $275 million acquisition of Geost, a specialist in electro-optical payloads with facilities in Tucson, Arizona and northern Virginia. This acquisition brought advanced sensor technology into Rocket Lab’s portfolio, complementing its existing strengths in satellite design, solar cell manufacturing, and launch services.
When combined, these multi-hundred-million-dollar commitments create a comprehensive industrial base that supports U.S. commercial and national security satellite initiatives. The integration of semiconductor manufacturing with payload technology also positions Rocket Lab to deliver more complete, vertically integrated spacecraft systems to customers.
Key Outcomes of the Investment
Rocket Lab’s expansion is expected to deliver several strategic outcomes that will benefit both the company and the nation’s space sector:
- Increased Production Capacity: The company will nearly double its monthly output of space-grade compound semiconductor wafers, growing from 20,000 to close to 35,000 per month.
- Enhanced Supply Chain Security: By ensuring access to domestically produced solar cells and electro-optical sensors, the U.S. aerospace industry will have greater independence from foreign suppliers.
- Rapid Delivery of Integrated Spacecraft: Rocket Lab will expand its ability to deliver spacecraft designed specifically for U.S. national security missions.
- Economic Impact: The initiative is projected to drive economic growth across several states, including California, Colorado, Maryland, New Mexico, Mississippi, Arizona, and northern Virginia. Rocket Lab expects to grow its U.S.-based workforce to more than 2,000 employees.
Leadership and Government Support
Brad Clevenger, Rocket Lab’s Vice President of Space Systems, highlighted the company’s long-standing heritage in advanced manufacturing:
“Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico. These latest investments will expand that production capacity, strengthen supply chains, create new jobs, and develop economic opportunities across the states where we operate. They are another example of Rocket Lab’s commitment to delivering reliable and cost-effective solutions at scale for the space industry.”
U.S. Secretary of Commerce Howard Lutnick reinforced the administration’s support, noting that:
“This administration is taking historic actions to encourage companies like Rocket Lab to invest in American ingenuity and innovation. Rocket Lab’s investment will help cement our dominance in space while expanding opportunities for workers across the country.”
Proven Track Record in Space Missions
Rocket Lab’s solar cells are already well-proven in some of the most high-profile space missions of recent decades. They have powered the James Webb Space Telescope, NASA’s Artemis lunar program, the Ingenuity Mars Helicopter, and the Mars Insight Lander. This impressive track record underscores Rocket Lab’s critical role in U.S. space exploration and its ability to deliver technologies that meet the most demanding mission requirements.
A Future of Expanded Capabilities
The expansion of semiconductor production and sensor technology is not just a business decision for Rocket Lab—it is a strategic move aligned with U.S. national priorities. By reinforcing domestic supply chains and investing in workforce growth, the company is ensuring that the U.S. remains at the forefront of space innovation.
With the CHIPS and Science Act funding, Rocket Lab will not only scale its production but also contribute to the broader goal of sustaining American leadership in space. The combination of expanded semiconductor capabilities, electro-optical sensor technology, and integrated spacecraft systems positions Rocket Lab as one of the most critical players in advancing both national security missions and pioneering scientific exploration.
