N.M. Delegation Welcomes Final CHIPS Act Funding Agreement with Albuquerque-Based Rocket Lab to Grow Semiconductor Manufacturing, Create 100 New Jobs

$24 million federal investment, preliminarily proposed in June, made possible through the CHIPS and Science Act

WASHINGTON – U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) and U.S. Representatives Melanie Stansbury (D-N.M.), Teresa Leger Fernández (D-N.M.), and Gabe Vasquez (D-N.M.) are welcoming the announcement from the U.S. Department of Commerce that a final agreement has been reached with SolAero by Rocket Lab, an Albuquerque, N.M.-based manufacturing company, to provide up to $23.9 million in direct funding under the CHIPS and Science Act. 

In July, Heinrich, Luján, and Stansbury, along with New Mexico Governor Michelle Lujan Grisham and Albuquerque Mayor Tim Keller, welcomed U.S. Deputy Secretary of Commerce Don Graves and White House CHIPS Coordinator Ryan Harper to New Mexico to highlight how the latest $24 million investment from the CHIPS and Science Act will further solidify New Mexico’s role as a leader in advanced manufacturing and create over 100 direct manufacturing jobs in Albuquerque.    

“Two years ago, I worked hard to pass the CHIPS and Science Act because I knew it would have a transformative impact in New Mexico. This finalized agreement to deliver $24 million from the CHIPS Act to support one of our homegrown space-based defense companies and create 100 new advanced manufacturing jobs in Albuquerque is exactly what I had in mind,” said Heinrich, who served on a conference committee of Senate and House members to finalize what eventually became the CHIPS and Science Act. “These new manufacturing jobs at SolAero by Rocket Lab’s facility in Albuquerque come alongside the clean energy and microelectronics manufacturing boom we’ve spurred through both the CHIPS Act and our landmark Inflation Reduction Act. We are making New Mexico one of the best places in America to manufacture advanced technologies – and by doing so, we’re creating hundreds of new, good-paying jobs that New Mexicans can build their families around in their home communities.” 

“As a member of the Senate Commerce Committee, I was proud to help shape the CHIPS and Science Act to advance New Mexico’s role in the future of manufacturing to ensure the U.S. continues to be a global leader in semiconductor manufacturing,” said Luján. “This funding of nearly $24 million will help solidify New Mexico as a hub for cutting-edge innovation. I welcome this investment by the Department of Commerce and am thrilled that SolAero will continue to drive innovation while creating jobs here at home. This investment will further New Mexico’s legacy of advanced manufacturing, and I look forward to seeing SolAero’s success for years to come.” 

“I am so excited that SolAero will get $24 million to expand and modernize their facilities right in the heart of New Mexico’s 1st Congressional District,” said Stansbury. “Thanks to the CHIPS and Science Act, more than 100 new manufacturing jobs will be created and New Mexico will continue leading the way in technological manufacturing. The future is bright!” 

“Not only will this $23.9M investment help strengthen our national security and increase the amount of advanced semiconductor manufacturing in the United States, it will create 100 good paying jobs for New Mexicans,” said Leger Fernández. “With this funding, our satellites won’t be dependent on foreign sources for solar power, and instead use American-manufactured solar cells made from compound semiconductors. Manufacturing is growing in New Mexico and this is exactly the kind of growth we had in mind when we passed the CHIPS and Science Act.” 

“I’m proud to welcome $23.9 million investment for Rocket Lab to strengthen our national security, bolster our ability to power spacecraft and satellites and create over 100 good-paying manufacturing jobs right here in Albuquerque,” said Vasquez. “This funding is a game-changer for New Mexico and for our nation’s space and semiconductor industries. It will ensure New Mexico remains a leader in innovation and America remains competitive on the global stage.”

Background on Luján’s Leadership on Science and Innovation: 

In addition to support through the Department of Commerce, the CHIPS and Science Act authorized $17.6 billion for DOE Science and Innovation, including $16.5 billion based on an amendment that Luján authored to strengthen DOE’s research and development efforts in 10 key technology focus areas, including clean energy and energy efficiency, advanced manufacturing, biotechnology, artificial intelligence, and quantum information sciences.  

In 2021, Senator Luján led a bipartisan group of his colleagues to ensure the U.S. Department of Energy in addition to the Department of Commerce remains central to our nation’s science and technology competitiveness strategy. Senator Luján secured historic authorization of funds for research and development at the DOE National Laboratories and significant funding to restore and modernize National Lab infrastructure.  

Additional victories secured by Luján include the creation of a nonprofit foundation for energy innovation and robust funding for National Labs to foster the next generation of science and tech entrepreneurs and to help local small businesses access the Labs’ premier facilities. 

Background on SolAero by Rocket Lab: 

Headquartered in Albuquerque, SolAero is one of two companies domestically, and three companies outside of Russia and China, that specializes in the production of highly efficient and radiation-resistant compound semiconductors called space-grade solar cells—devices used in space to convert light into electricity.    

Rocket Lab’s space-grade solar cells power critical space programs such as missile awareness systems and exploratory science missions, including the James Webb Space Telescope, NASA’s Artemis lunar explorations, Ingenuity Mars Helicopter, and the Mars Insight Lander. Rocket Lab’s technology also serves a booming commercial satellite market, such as powering the OneWeb broadband internet satellite constellation. As the United States and other nations expand their technological presence in space, there is a growing demand for space-grade solar cells. Space-based defense systems are integral to our national security and are completely reliant on solar power.   

This now finalized CHIPS investment will help create a more robust and resilient supply of space-grade solar cells. The modernization and expansion project will increase their compound semiconductor production by 50% within the next three years—helping to domestically meet the growing national security and consumer demand for these solar cells.   

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