07:51 AM EDT, 06/11/2024 (MT Newswires) -- Rocket Lab USA ( RKLB ) said Tuesday that it has signed a non-binding preliminary memorandum of terms with the US Department of Commerce for a proposed $23.9 million in direct funding under the CHIPS Act.

The company said the funds would be used to increase its production of compound semiconductors for spacecraft and satellites by 50% and help create more than 100 direct manufacturing jobs in Albuquerque, New Mexico.

Rocket Lab said that in addition to these proposed federal incentives, the State of New Mexico has committed to providing funds of up to $25.5 million for the project.

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