Veeco launches new MOCVD system with first order from Rocket Lab

PLAINVIEW, N.Y. - Veeco Instruments Inc. (NASDAQ:VECO) announced Monday the launch of its new Lumina+ metal-organic chemical vapor deposition (MOCVD) system, securing its first commercial multi-tool order from Rocket Lab Corporation (NASDAQ:RKLB). Rocket Lab’s stock has shown remarkable momentum, with a 473% return over the past year and trading near its 52-week high. According to InvestingPro data, the company’s revenue grew by 54% in the last twelve months.

Rocket Lab purchased the tools as part of its project under the Department of Commerce’s CHIPS and Science Act to expand domestic production of compound semiconductor products. The company plans to double production capacity for space-grade solar cells at its Albuquerque, New Mexico facility.

According to the press release, the Lumina+ system features the largest As/P batch size in the MOCVD industry and improved process efficiency. Anil Vijayendran, Vice President of the MOCVD Product Line at Veeco, described it as a "highly differentiated, game-changing production platform."

Rocket Lab has used Veeco platforms for over 20 years. Brad Clevenger, Vice President of Space Systems at Rocket Lab, stated the collaboration will help meet increasing demand for satellite solar power while serving as a source for domestically produced semiconductor technologies.

The Lumina+ system is designed for high-performance, cost-effective optoelectronic devices used in solar applications, consumer electronics, automotive, optical communications, and biotechnology sectors.

Veeco manufactures semiconductor process equipment including laser annealing, ion beam, MOCVD, single wafer etch & clean, and lithography technologies for the fabrication and packaging of advanced semiconductor devices.

In other recent news, Rocket Lab USA has secured a significant contract extension with Synspective, a Japanese satellite company, for 10 additional dedicated Electron launches. This agreement increases Synspective’s total planned missions with Rocket Lab to 21, marking the largest order of dedicated Electron launches from a single customer. Additionally, Rocket Lab has delivered two spacecraft, named Blue and Gold, to NASA’s Kennedy Space Center for the ESCAPADE mission, which aims to study solar wind interactions with Mars’ magnetosphere. In financial developments, Rocket Lab announced a new at-the-market offering program to sell up to $750 million worth of common stock. The company will collaborate with several investment banks as sales agents for this offering. Furthermore, Rocket Lab’s Board of Directors has approved a Senior Executive Cash Incentive Bonus Plan, linking bonuses to performance targets. These recent developments highlight Rocket Lab’s expanding partnerships and strategic financial maneuvers.

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