Rocket Lab: U.S. Investment Expanded To Boost Semiconductor Manufacturing

By Amit Chowdhry ● Aug 25, 2025

Rocket Lab, a leader in launch services and space systems, is significantly increasing its investments in the United States to boost semiconductor manufacturing. These efforts focus on expanding production of space-grade solar cells and electro-optical sensors—critical components for national security missions.

The expansion will be supported by a $23.9 million award from the Department of Commerce, funded through the CHIPS and Science Act, to strengthen U.S. leadership in this advanced technology sector.

Over the next five years, Rocket Lab’s investments aim to strengthen its position as a leading satellite manufacturer and supplier. The company is one of only two in the U.S. specializing in high-efficiency, radiation-hardened compound semiconductors for space. As part of its growth, Rocket Lab recently acquired Geost, a company known for its advanced electro-optical payloads, with operations in Arizona and northern Virginia. Altogether, these initiatives represent several hundred million dollars invested in enhancing the nation’s semiconductor base and driving industry innovation.

Key goals of this expansion include:

  1. Doubling the production of compound semiconductors and space-grade solar cells from 20,000 to nearly 35,000 wafers per month
  2. Supplying U.S. spacecraft makers and the aerospace industry with advanced, domestically produced technologies
  3. Increasing the ability to deliver integrated spacecraft systems tailored for security missions
  4. Creating new jobs and driving economic growth in states like California, Colorado, Maryland, New Mexico, Mississippi, Arizona, and Virginia, with plans to exceed 2,000 U.S.-based employees

Rocket Lab’s technology has powered primary NASA missions, such as the James Webb Space Telescope and the Artemis program, highlighting the crucial role the company plays in American space exploration and national security.

KEY QUOTES:

“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 – and are additional examples of Rocket Lab’s commitment to delivering reliable and cost-effective solutions at scale to the space industry.”

Rocket Lab Vice President of Space Systems, Brad Clevenger

“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.”

U.S. Secretary of Commerce Howard Lutnick

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