09:06 AM EDT, 07/16/2024 (MT Newswires) -- Rocket Lab USA ( RKLB ) said Tuesday it has signed a preliminary agreement under the CHIPS Act that would support a 50% increase in the company's compound semiconductor production for spacecraft and satellites within the next three years.

The space systems company said the increased production will help the US meet the demand for these solar cells domestically.

The investment of up to $23.9 million from the CHIPS Act is expected to produce more than 100 direct manufacturing jobs, the company said.

Shares of Rocket Lab were up 1.7% in premarket activity on Tuesday.

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