Israel Signs $115M deal to Expand IR Production

Semiconductor Devices (SCD), a leading Israeli maker of infrared sensors, has signed a multi-year strategic contract with the Ministry of Defense under the “Blue & White” initiative.

The agreement, valued at approximately $115 million, aims to strengthen Israel’s domestic defense industry while advancing its technological independence in the critical field of infrared systems.

According to SCD, the program will fund a substantial expansion of cleanroom facilities and manufacturing infrastructure, enabling the development and production of next-generation infrared sensors across the full IR spectrum: short-wave (SWIR), mid-wave (MWIR), and long-wave (LWIR). The company said it will double its current production capacity with an emphasis on both cooled and uncooled detectors, bringing in cutting-edge fabrication methods and advanced IR semiconductor technologies.

“This agreement reflects our deep commitment to the strategic needs of the State of Israel and to maintaining our leadership in infrared technologies,” said Kobi Zaushnizer, CEO of SCD. “The enhanced capabilities will not only support future defense requirements but will also strengthen Israel’s industrial and technological independence in this critical field.”

Beyond its national impact, SCD noted that the program carries global strategic importance. As an established OEM supplier of infrared detectors and modules, the company plans to leverage its upgraded facilities to serve defense manufacturers worldwide. The expanded capabilities will support a broad range of applications, including airborne payloads, space systems, area dominance platforms, and large-scale defense systems.

“Innovation in the IR domain is critical not only for national defense but also for our global partners,” Zaushnizer added. “This investment empowers SCD to provide the most advanced, reliable, and high-performance infrared technologies to the international defense community.”

Senior defense officials also emphasized the broader importance of the program. Brig. Gen. (Res.) Dr. Daniel Gold, Head of the Directorate of Defense Research and Development, said: “We are working to deepen Israeli independence across the entire value chain. In the sensor domain, we are building breakthrough domestic production capabilities for IR technologies at the forefront of global innovation that will deliver results for many years to come, while strengthening Israel’s industrial base. These capabilities will serve the entire defense establishment and provide the technological building blocks for tomorrow’s advanced systems, ensuring Israel’s technological superiority and qualitative edge.”

Brig. Gen. Yehuda Elmakayes, Head of the DDR&D R&D Division, added that the investment will expand manufacturing capacity and bring advanced technological capabilities for next-generation detectors. “SCD detectors are already a critical component in many IDF electro-optical systems today, and this project will enable both expanded procurement and future system development led by the DDR&D’s R&D Division,” he said.

With the agreement, Israel is positioning its defense industry to maintain a leading edge in infrared innovation, ensuring both domestic resilience and continued support for allied defense manufacturers around the world.