Space Grade Semiconductors

Rocket Lab is moving beyond its role as a launch provider and building up serious semiconductor manufacturing capabilities. With a $23.9 million CHIPS Act grant, the company plans to double its wafer production for space grade technologies such as radiation hardened solar cells and sensors. These components are vital for spacecraft, defense systems, and national security applications, where reliability and resilience under extreme conditions matter most. Rocket Lab’s acquisition of Geost also adds advanced infrared sensor technology to its portfolio, helping the company integrate more tightly across the semiconductor supply chain.

For engineers, this expansion signals new opportunities and challenges in space-focused semiconductor design and manufacturing. Rocket Lab is scaling output from about 20,000 wafers to 35,000 wafers per month, which will require process improvements, workforce expansion, and tighter control of supply chains. By producing more of these high reliability chips domestically, the company is helping reduce U.S. dependence on international suppliers while opening the door for more innovation in space grade electronics.

Rocket Lab’s expansion into semiconductor manufacturing highlights a broader shift in the industry toward specialization and vertical integration, especially in high reliability markets like space and defense. As demand grows for radiation hardened and mission critical chips, we can expect more crossover between aerospace and semiconductor sectors, with companies seeking to control both design and production to secure supply chains. This move also signals that government funding through initiatives like the CHIPS Act is actively shaping not just volume manufacturing, but also niche, advanced applications, potentially setting the stage for a stronger, more resilient U.S. semiconductor ecosystem.

Sources: https://www.ainvest.com/news/rocket-lab-usa-push-semiconductor-dominance-key-player-space-grade-tech-2509/
https://www.theglobeandmail.com/investing/markets/stocks/NOC/pressreleases/34545198/beyond-launch-rocket-lab-s-push-for-semiconductor-dominance/
https://finance.yahoo.com/news/beyond-launch-rocket-labs-push-152200241.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAALjLHZvGZHNRlzmt7lsblgaxGdRyBWlrl91WdS3P5lqdGrv5PNvWouWt_5ZWHtPziq0PNcy4oGFWsUJX0JCIA-6gDzJN_vCCu33CqcKdfWVBn-CMV78Nr__eVvbAoL7bFXURrwNnuK673FZ7c88Irz8tcsR_A7kdReQtYXDwwjpk