Rocket Lab USA, Inc. (NASDAQ: RKLB) has just announced that it has secured a $23.9 million award from the U.S. Department of Commerce to expand its compound semiconductor manufacturing capability and capacity at its facility in Albuquerque, New Mexico. This funding is part of Rocket Lab's efforts to boost its semiconductor manufacturing capabilities and meet the growing demand for its products.
The semiconductors produced by Rocket Lab are crucial components for national security and commercial applications, particularly in the production of space-grade solar cells and other optoelectronic products. With this funding, Rocket Lab aims to scale semiconductor production and enhance its manufacturing capabilities at the New Mexico facility.
Rocket Lab's Vice President of Space Systems, Brad Clevenger, emphasized the significance of this award in reinforcing the company's leadership in space-grade solar cell production and its role in revitalizing domestic semiconductor manufacturing capability in the U.S.
Rocket Lab is one of only two companies in the United States specializing in the production of highly efficient and radiation-hardened space-grade solar cells. The company's solar cell facility in Albuquerque has been a technology hub for the past 25 years and currently employs over 370 people.
The company's products have been integral to various critical space programs, including early missile warning and interplanetary science missions, the James Webb Space Telescope, NASA's Artemis lunar explorations, the Ingenuity Mars helicopter, and the Mars InSight lander, as well as hundreds of commercial telecommunication satellites.
Rocket Lab, founded in 2006, is known for its end-to-end space services, including reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions. The company's Electron small orbital launch vehicle has become the second most frequently launched U.S. rocket annually since its first orbital launch in January 2018, delivering 198 satellites to orbit for private and public sector organizations.
Rocket Lab's spacecraft platforms have also been selected to support NASA missions to the moon and Mars, as well as the first private commercial mission to Venus. The company operates three launch pads at two launch sites, including two launch pads at a private orbital launch site in New Zealand and a third launch pad in Virginia.
The funding secured by Rocket Lab underscores the company's commitment to innovation and its significant role in the space industry's supply chain. With the expansion of its semiconductor manufacturing capability, Rocket Lab is poised to further contribute to space exploration and satellite technology while creating highly skilled manufacturing jobs and driving economic development in New Mexico. Following these announcements, the company's shares moved 6.3%, and are now trading at a price of $27.28. If you want to know more, read the company's complete 8-K report here.
