Rocket Lab USA Inc. (RKLB) stock surged 5.05% on Friday, following an announcement that the company was awarded up to $23.9 million in direct funding under the federal Chips Act.
The funding will support the modernization and expansion of Rocket Lab's facility in Albuquerque, New Mexico, which is projected to increase the company's compound semiconductor production by 50% over the next three years.
The Chips Act funding news appears to have fueled investor optimism about Rocket Lab's future growth prospects, driving the stock's intraday rally. The aerospace company's solar cell subsidiary, SolAero Technologies, is expected to benefit significantly from the facility upgrades enabled by the federal funding.
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