Rocket Lab Eyeing Semiconductors Expansion - Inks Initial Pact Worth $23.9M For CHIPS Act Funding
Portfolio Pulse from Nabaparna Bhattacharya
Rocket Lab USA, Inc. (NASDAQ:RKLB) has signed a preliminary memorandum with the Department of Commerce to receive up to $23.9 million in funding under the CHIPS and Science Act. This investment will create over 100 manufacturing jobs and enable Rocket Lab to expand its semiconductor production by 50% over the next three years. The company also plans to claim a 25% Investment Tax Credit for qualified capital expenditures.
June 11, 2024 | 1:37 pm
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Rocket Lab has signed a preliminary agreement to receive $23.9 million in funding under the CHIPS and Science Act, which will help expand its semiconductor production by 50% and create over 100 jobs. The company also plans to claim a 25% Investment Tax Credit.
The funding and tax credit will enable Rocket Lab to significantly expand its semiconductor production, which is crucial for its space missions. This expansion is likely to positively impact the company's revenue and stock price in the short term.
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