The company, which provides launch services and spacecraft systems, will expand its production of space-grade solar cells and electro-optical sensors used in satellites and spacecraft. The initiative is being supported by a US$23.9 million award from the US Department of Commerce, delivered under the CHIPS and Science Act to strengthen domestic semiconductor capability.
Rocket Lab is one of only two US firms specialising in high-efficiency, radiation-hardened, space-grade compound semiconductors. Over the next five years, the company’s expanded capital program is expected to reinforce its role as a leading supplier for both commercial and national security missions.
The move follows Rocket Lab’s US$275 million (AU$427.8 million) acquisition of Geost, an electro-optical payload provider with facilities in Arizona and Virginia. Together, these investments are expected to solidify the US industrial base for advanced semiconductors while increasing innovation in the space sector.
As part of the expansion, Rocket Lab plans to:
- Increase compound semiconductor and solar cell output from 20,000 wafers to nearly 35,000 per month.
- Provide US spacecraft manufacturers with domestically produced advanced semiconductor and sensor technologies.
- Expand its ability to rapidly deliver integrated spacecraft systems for national security applications.
- Grow its workforce to more than 2,000 employees across California, Colorado, Maryland, New Mexico, Mississippi, Arizona and Virginia.
Brad Clevenger, Rocket Lab’s vice-president of space systems, said the company’s history in semiconductor technology positioned it well to scale production and deliver for both government and commercial customers.
“Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence in New Mexico,” Clevenger said. “These latest investments will expand that production capacity, strengthen supply chains, create new jobs, and develop economic opportunities across the states where we operate.”
US Commerce Secretary Howard Lutnick welcomed the announcement, saying the investment would strengthen the country’s space sector while supporting domestic manufacturing jobs.
“Rocket Lab’s investment will help cement our dominance in space while expanding opportunities for workers across the country,” Secretary Lutnick said.
Rocket Lab’s solar cell technology has powered some of the most high-profile space missions of recent years, including the James Webb Space Telescope, NASA’s Artemis lunar program, the Ingenuity Mars Helicopter and the Mars InSight lander.
For Australia, Rocket Lab’s expanded US semiconductor capacity could strengthen allied supply chains for space-grade components, offering greater resilience and interoperability for Defence and commercial space projects under the AUKUS partnership and beyond.