Trump administration supports Rocket Lab with $23.9 mln award

Trump administration supports Rocket Lab with $23.9 mln award

The Trump administration has announced a significant $23.9 million investment in Rocket Lab Corporation (Nasdaq: RKLB), a global leader in launch services and space systems. The funding, provided through the Department of Commerce, is part of the CHIPS and Science Act aimed at bolstering U.S. leadership in space-grade semiconductor technology. This support will enable Rocket Lab to expand its semiconductor manufacturing capacity and secure its supply chain for space-grade solar cells and electro-optical sensors crucial for national security space missions.

Rocket Lab, headquartered in Long Beach, California, has been a key player in the space industry, delivering reliable launch services and satellite manufacturing solutions. The latest investment will double the company's production capacity of compound semiconductors and space-grade solar cells, from 20,000 wafers to nearly 35,000 wafers per month. This expansion will provide U.S. spacecraft manufacturers and the broader aerospace industry with access to advanced semiconductor and electro-optical technologies.

The investment also supports Rocket Lab's strategic acquisition of Geost, an electro-optical payload provider, for $275 million. This acquisition, combined with the new funding, will strengthen America's semiconductor industrial base and drive innovation in commercial and national security satellite missions. The company expects to expand its U.S. based headcount to more than 2,000 employees, contributing to economic growth in states such as California, Colorado, Maryland, New Mexico, Mississippi, Arizona, and northern Virginia.

Brad Clevenger, Rocket Lab's Vice President of Space Systems, highlighted the company's commitment to delivering reliable and cost-effective solutions at scale. Secretary of Commerce Howard Lutnick noted that the administration's support will help cement the U.S. dominance in space while expanding opportunities for workers across the country.

Rocket Lab's solar cells have powered industry-defining space missions, including the James Webb Space Telescope, NASA's Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander. The company's Electron launch vehicle has become the second most frequently launched U.S. rocket annually, delivering over 190 satellites to orbit.

This investment underscores the Trump administration's focus on promoting U.S. ingenuity and innovation in the space sector, while also addressing critical supply chain security concerns.

References:
[1] Rocket Lab Corporation. (2025, August 22). Rocket Lab Announces Expanded U.S. Investments for National Security. Business Wire. Retrieved from https://www.stocktitan.net/news/RKLB/rocket-lab-announces-expanded-u-s-investments-for-national-security-8flmghpcyt1j.html