Introduction
New Mexico-based SolAero Technologies, a subsidiary of Rocket Lab, is poised to receive around $24 million in federal funding. This non-binding preliminary agreement would help increase the production of compound semiconductors by 50% within three years.
Compound semiconductors, also known as solar cells, are essential for powering satellites and spacecraft. The U.S. Commerce Department announced the proposed award on Tuesday, highlighting the importance of these specialty semiconductors in maintaining communication and space technology infrastructure.
Funding Breakdown
The $24 million in federal funding will come from a $52.7 billion pot created by the CHIPS and Science Act passed by President Joe Biden in 2022. This legislation aims to revitalize domestic semiconductor manufacturing and increase supply chain resilience.
In addition to the federal funding, the state of New Mexico has committed to providing financing and incentives worth $25.5 million. This support will help SolAero build out its Albuquerque-based facilities and create over 100 direct manufacturing jobs.
Background on SolAero Technologies
SolAero is a leading provider of space-grade solar cells and panels. The company was acquired by Rocket Lab in 2022 for $80 million. With around 115,000 square feet of manufacturing space, SolAero is one of only two U.S.-based companies specializing in the production of radiation-resistant compound semiconductors.
SolAero’s operations are highly vertically integrated, enabling it to manufacture solar cells, panels, and power modules. The company’s expertise has been recognized through its involvement in high-profile projects like the James Webb Space Telescope and OneWeb’s satellite internet constellation.
Impact on the Industry
The proposed funding will contribute significantly to SolAero’s growth plans. By increasing production capacity by 50% within three years, Rocket Lab can meet growing demand from the space industry for compound semiconductors.
This investment is also expected to boost job creation in New Mexico, providing more opportunities for local residents. As part of its commitment to supporting U.S.-based semiconductor manufacturing, the Biden administration’s CHIPS and Science Act will help ensure domestic supply chain resilience.
Quotes and Statements
Commerce Secretary Gina Raimondo noted that "solar cells are crucial for maintaining communication and space technology infrastructure." She emphasized the significance of this funding in supporting the military, NASA, and commercial space industries’ access to specialty semiconductors.
Rocket Lab’s statement highlighted the potential benefits of the proposed award: "This funding would help our company build out its Albuquerque-based facilities, create more than 100 direct manufacturing jobs, and increase production by 50% within three years."
Related Developments
The CHIPS and Science Act has been instrumental in creating a $52.7 billion fund dedicated to revitalizing domestic semiconductor manufacturing. As part of this effort, various companies are receiving funding to support their growth plans.
Some notable developments include:
- Rocket Lab’s acquisition of SolAero Technologies in 2022
- The CHIPS and Science Act’s passage by President Joe Biden in 2022
- The Biden administration’s commitment to supporting U.S.-based semiconductor manufacturing
These initiatives demonstrate the importance of investing in domestic semiconductor production and its potential impact on supply chain resilience.
Conclusion
The proposed $24 million funding for SolAero Technologies represents a significant milestone in Rocket Lab’s efforts to increase compound semiconductor production. As one of only two U.S.-based companies specializing in radiation-resistant semiconductors, SolAero is poised to play a critical role in maintaining space technology infrastructure.
With the support of federal and state funding, Rocket Lab can meet growing demand from the space industry while creating new job opportunities in New Mexico. This investment underscores the significance of domestic semiconductor manufacturing in ensuring supply chain resilience and supporting various industries’ needs.
