Rocket Lab to Receive $23.9 Million for Satellite Semiconductor Boost

The U.S. Commerce Department announced on Tuesday that it plans to award Rocket Lab $23.9 million. This funding aims to significantly enhance the production of compound semiconductors used in satellites and spacecraft.

Strengthening Space-Grade Semiconductor Supply

The grant will benefit Rocket Lab’s subsidiary, SolAero Technologies Corp. According to the department, this investment will “create a more robust and resilient supply of space-grade solar cells that power spacecraft and satellites.” Additionally, it aims to “increase Rocket Lab’s compound semiconductor production by 50% within the next three years.”

Support from the Biden Administration

This funding comes from the Biden administration’s $52.7 billion chip manufacturing and research subsidy programme. This programme has also supported major companies such as Samsung Electronics, Intel, and TSMC.

Importance of Solar Cells in Space Technology

Commerce Secretary Gina Raimondo emphasised the crucial role of solar cells in maintaining communication and space technology. She noted that the proposed award to Rocket Lab would ensure that the U.S. military, NASA, and the commercial space industry have access to the specialised semiconductors they need.

Rocket Lab is one of only two U.S. companies specialising in the production of highly efficient, radiation-resistant compound semiconductors known as space-grade solar cells. The company, founded in 2006 by New Zealander Peter Beck, went public in the U.S. in 2021.

Expansion and Future Projects

Peter Beck, Rocket Lab’s founder, stated that the award would help the company expand its production facilities to meet the growing demand for chips from the U.S. government. Rocket Lab’s solar cells support various U.S. space programs, including missile awareness systems, the James Webb Space Telescope, NASA’s Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander.

The company is known for launching satellites using its Electron small rocket and plans to test its reusable Neutron rocket next year. This rocket is designed to deploy numerous satellites to low Earth orbit and support missions to Mars and Venus.

Rocket Lab has secured several hundreds of millions of dollars in U.S. federal contracts. These contracts include satellite production, spacecraft launches, and a deal to explore cargo delivery using its rockets.

Finalization of the Award

The latest award, similar to others from the chips subsidy program, is not yet finalised. The Commerce Department will conduct due diligence, which may result in changes to the awarded amounts.