Rocket Lab USA (RKLB +7.47%) stock -- what else? -- rocketed on Wednesday morning, soaring 7.2% through 9:45 a.m. ET after releasing multiple positive pieces of PR.
The least interesting of these is that Rocket Lab signed a "preliminary memorandum of terms" with the Commerce Department yesterday, which could see the company awarded up to $23.9 million in direct funding under the CHIPS and Science Act.
NASDAQ: RKLB
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Why is a rocket company getting semiconductor subsidies?
It may seem curious that Rocket Lab -- a space stock that specializes in building small satellites and small rockets to launch them -- would receive a government subsidy to manufacture semiconductor chips. But as Rocket Lab explains, the government funding would "enable Rocket Lab to increase its production of compound semiconductors for spacecraft and satellites." And in fact, Rocket Lab owns a subsidiary, SolAero Technologies, that specializes in building space-grade solar cells -- a special kind of semiconductor.
So it kind of makes sense.
Adding to the good news, Rocket Lab says the government of New Mexico is prepared to award it $25.5 million more to subsidize its semiconductor manufacturing in the state. So, we're actually talking about nearly $50 million in free money for Rocket Lab -- about 17.5% of the revenues the company ordinarily collects in a year for actual work.
50 rockets for Rocket Lab
Speaking of actual work, Rocket Lab had more good news last night. It posted on X that it's gearing up to launch its 50th Electron rocket and to set a new record for reaching 50 launches "faster than any other commercially developed rocket."
We're on the cusp of our 50th launch.
-- Rocket Lab (@RocketLab) June 12, 2024
And we're on track to reach 50 faster than any other commercially developed rocket.
So what's changed since our very first Electron launch in 2017?
Time for a stroll down memory lane 🧵 pic.twitter.com/KXPiplqlTt
Dubbed the "No Time Toulouse" mission, it will see Rocket Lab launch five Internet-of-Things (IoT) satellites for French company Kinéis. The mission is scheduled to lift off in just one week, on or about June 19.
