CHIPS Act funding for Rocket Lab and BAE Systems
The US Department of Commerce has finalised agreements with Rocket Lab and BAE Systems Electronic Systems for funding under the CHIPS program for investment in compound semiconductors. The awards follow previously signed agreements announced in December 2023 with BAE Systems and June 2024 with Rocket Lab.
Rocket Lab will receive up to $23.9 million to invest in its supply chain for space-grade solar cells. These are 4-junction n-on-p solar cell on germanium substrate, came as part of its 2022 acquisition of SolAero Technologies. The cells are used in US programs including missile awareness systems, the James Webb Space Telescope, and NASA’s Artemis program.
“This award will help to ensure US leadership in compound semiconductor manufacturing capability while reenforcing Rocket Lab’s position as a leader in space-grade solar cell production,” said Brad Clevenger, vice president of Rocket Lab Space Systems. “The investment will enable Rocket Lab to expand production, create highly skilled manufacturing jobs and generate economic and workforce development activity in New Mexico.”
BAE Systems’ award of up to $35.5 million will support modernising the company’s Microelectronics Center (MEC) in Nashua, New Hampshire. The MEC is an 110,000-square-foot, DoD-accredited, foundry that develops semiconductors to meet demanding military requirements. It is one of the only US domestic defence-centric six-inch GaAs and GaN HEMT wafer foundries.
The company plans to quadruple its production capacity for MMIC chips for military aircraft and commercial satellite systems.
“From satellites in space to defence systems on the ground, our most advanced defence and commercial technology rely on mature-node and compound semiconductors to operate,” said Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology and National Institute of Standards and technology director. “By finalising these awards, we are strengthening America’s domestic semiconductor supply chain resilience and broadening our manufacturing capabilities.”
