The Biden-Harris Administration announced today that the Department of Commerce and Rocket Lab, the parent company of SolAero Technologies Corp., have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $23.9 million in direct funding under the CHIPS and Science Act. This proposed investment aims to bolster the supply of space-grade solar cells used in spacecraft and satellites by increasing Rocket Lab’s compound semiconductor production by 50% over the next three years. The project is expected to create over 100 direct manufacturing jobs.
“Solar cells are important for keeping our communication and space technology powered and operational, and this proposed award would help our military, NASA, and our commercial space industry have access to the specialty semiconductors they need to keep our country safe and continue to lead in scientific discoveries and space commerce,” said U.S. Secretary of Commerce Gina Raimondo.
Rocket Lab, headquartered in Albuquerque, New Mexico, is one of two U.S. companies specializing in highly efficient and radiation-resistant compound semiconductors known as space-grade solar cells. These devices power critical U.S. space programs such as missile awareness systems, exploratory science missions including the James Webb Space Telescope, NASA’s Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander.
“With today’s announcement, the President marks another important chapter for America’s semiconductor leadership,” said White House National Economic Advisor Lael Brainard.
Under Secretary of Commerce for Standards and Technology Laurie E. Locascio added that “solar cells are increasingly important to maintaining United States’ leadership in space.”
Rocket Lab founder and CEO Peter Beck emphasized their commitment: “We are proud to be strengthening that future with the support of the CHIPS Office by expanding our production facilities.”
In New Mexico, Rocket Lab will partner with New Space New Mexico (NSNM), contributing $2 million over three years towards initiatives like NewSpace Ignitor and Pathways to the Stars programs aimed at promoting high-tech manufacturing in underserved communities.
The Department may offer applicants a PMT on a non-binding basis after satisfactory completion of a merit review. The PMT outlines key terms for potential CHIPS incentives awards subject to due diligence and negotiation.
The announcement with Rocket Lab marks the tenth PMT announcement under the CHIPS and Science Act this year. Additional announcements are expected throughout 2024.
CHIPS for America is part of President Biden’s economic plan focused on investing in America, stimulating private sector investment, creating jobs, making more products domestically, and revitalizing communities left behind.
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