Rocket Lab Boosts U.S. Presence with Security Program & Semiconductor Expansion

08/22/2025 – 04:30 PM

LONG BEACH, Calif.–(BUSINESS WIRE)–Rocket Lab (Nasdaq: RKLB), the space launch and systems company, is doubling down on its U.S. investments, earmarking funds to ramp up its semiconductor manufacturing capabilities. This expansion aims to bolster the supply chain for critical space-grade solar cells and electro-optical sensors, crucial components for national security space missions. A $23.9 million award from the Department of Commerce, fueled by the CHIPS and Science Act, underscores the government’s commitment to securing U.S. leadership in this vital sector.

This strategic move directly addresses rising demand for domestic, reliable sources of specialized components essential for spacecraft and satellites. Rocket Lab anticipates these capital investments, spread across the next five years, will solidify its position as a leading integrated player, providing components, manufacturing services, and comprehensive mission solutions for both commercial clients and national security initiatives. Currently, Rocket Lab stands as one of only two U.S. companies specializing in high-efficiency, radiation-hardened, space-grade compound semiconductors.

This expansion builds upon Rocket Lab’s existing U.S. growth strategy for its space systems, amplified by the $275 million acquisition of Geost, a provider of electro-optical payloads with operations in Tucson, Arizona, and Northern Virginia. The combined power of these substantial investments promises to fortify the American semiconductor industrial base and stimulate innovation within the U.S. space sector, directly benefiting both commercial and national security satellite programs. The deal showcases the strategic importance of vertical integration in the increasingly competitive space race.

Rocket Lab projects the following outcomes from its investments:

Doubling of compound semiconductor and space-grade solar cell production capacity, increasing from 20,000 wafers to nearly 35,000 wafers per month. This aggressive upgrade in capacity positions Rocket Lab to capture a larger share of the market.
Expanding access to domestically produced, cutting-edge semiconductor and electro-optical technologies for U.S. spacecraft manufacturers and the broader aerospace industry. Bridging the accessibility gap allows even smaller players to access advanced technology.
Enhancing its rapid delivery capabilities of integrated spacecraft systems custom-built for U.S. national security applications. Speed and responsiveness are crucial components that separate Rocket Lab from its competitors.
Driving economic growth across multiple states – California, Colorado, Maryland, New Mexico, Mississippi, Arizona and Northern Virginia – as its U.S.-based workforce expands beyond 2,000 employees. Rocket Lab is becoming an important creator of high-technology jobs across the nation.

Brad Clevenger, Rocket Lab Vice President of Space Systems, notes the company’s legacy: “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.” His remarks highlight the long-term strategic importance of building on existing expertise.

U.S. Secretary of Commerce Howard Lutnick stated, “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.” The Secretary is clearly signaling strong government support for the space sector, particularly for companies that invest in domestic production.

Rocket Lab’s solar cells have already powered iconic missions, including the James Webb Space Telescope, NASA’s Artemis lunar program, the Ingenuity Mars Helicopter, and the Mars Insight Lander. The Company’s technology has been used worldwide in space missions.

About Rocket Lab

Founded in 2006, Rocket Lab is a comprehensive space company delivering launch services, satellite manufacturing, spacecraft components, and on-orbit management solutions. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle and is developing the Neutron launch vehicle for larger constellation deployments. Since 2018, Rocket Lab has become the second most frequently launched U.S. rocket annually. Rocket Lab has three launch pads, including two in New Zealand and one in Virginia.

Forward Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors. Any such forward-looking statements represent management’s estimates as of the date of this press release. The Company does not undertake any obligation to update such forward-looking statements even if subsequent events cause its views to change.

Rocket Lab Boosts U.S. Presence with Security Program & Semiconductor Expansion