Rocket Lab Expands U.S. Investments for Semiconductor Manufacturing

LONG BEACH, California — Rocket Lab USA, Inc. announced on August 22, 2025, plans to significantly expand its U.S. semiconductor manufacturing capabilities. This expansion, supported by a $23.9 million grant from the U.S. Department of Commerce under the CHIPS and Science Act, aims to bolster national security and enhance supply chain stability.

The company’s initiative will increase its monthly production of semiconductors and solar cells from 20,000 to nearly 35,000 wafers by 2030. This move is projected to create over 1,000 new jobs in seven states, including California, Colorado, and Maryland.

Rocket Lab’s decision to enhance semiconductor production is part of a broader strategy to reduce reliance on foreign manufacturing. The company specializes in producing radiation-hardened semiconductors for satellites and defense applications, which are critical components for national security.

“Our leadership in American-made semiconductor technologies is built upon more than 25 years of engineering and manufacturing excellence,” said Brad Clevenger, Rocket Lab’s Vice President of Space Systems. “These latest investments will expand production capacity, strengthen supply chains, and create new jobs.”

The expansion aligns with U.S. policy goals to foster domestic semiconductor manufacturing as global demand increases. Furthermore, Rocket Lab’s acquisition of Geost, an electro-optical payload provider, aims to integrate advanced sensor technologies and reduce dependence on third-party sources.

“This administration is taking historic actions to encourage companies like Rocket Lab to invest in American ingenuity and innovation,” stated U.S. Secretary of Commerce Howard Lutnick.

With a market capitalization of $21.4 billion, Rocket Lab is positioned to capitalize on both public and private demand for domestic semiconductor production. The company’s revenue growth has been robust, with an increase of 54% in the past year. However, challenges such as high capital costs in semiconductor production persist.

The expansion signifies Rocket Lab’s commitment to the U.S. space industry and its dedication to supporting national security interests through enhanced manufacturing capabilities.