Core Insights - Rocket Lab USA, Inc. (RKLB) is expanding its semiconductor manufacturing capabilities to address the increasing demand for advanced, space-grade semiconductor technologies [1][4] - The company specializes in high-efficiency, radiation-hardened, space-grade compound semiconductors, which are essential for critical missions such as NASA's Artemis lunar program and the James Webb Space Telescope [2][4] - Rocket Lab received a $23.9 million award from the U.S. Department of Commerce under the CHIPS and Science Act to enhance its semiconductor production capacity, aiming to double its output from 20,000 wafers to nearly 35,000 wafers per month [3][9] Company Developments - The expansion of Rocket Lab's semiconductor manufacturing is expected to strengthen its position in the growing semiconductor market, particularly in space and defense applications [4] - The company’s stock has seen a significant increase of 702% over the past year, outperforming the industry average growth of 39.3% [8] - Rocket Lab's shares are currently trading at a premium, with a forward 12-month Price/Sales ratio of 30.20X compared to the industry average of 10.28X [10] Industry Context - Other aerospace and defense companies, such as Northrop Grumman Corporation (NOC) and L3Harris Technologies (LHX), are also advancing their semiconductor capabilities [5] - Northrop Grumman has a semiconductor foundry that produces custom radiation-hardened chips for defense programs [6] - L3Harris focuses on creating customized microelectronic solutions tailored to specific mission requirements [7]

Core Insights - TSMC plans to accelerate its expansion, expecting to build 9 new factories globally this year, including 8 wafer fabs and 1 advanced packaging facility [1] - The 20th wafer fab in Hsinchu and the 22nd fab in Kaohsiung will serve as production bases for 2nm technology, both of which began construction in 2022 and are set to start production this year [1] - The 25th wafer fab in Taichung is scheduled to begin construction by the end of this year, with plans to produce technology more advanced than 2nm by 2028 [1]