Israel’s Ministry of Defense (IMOD) has signed a mutli-year agreement with Semiconductor Devices (SCD), a leading developer of infrared (IR) technologies, in a contract valued at approximately $115 million. The deal, led by the Directorate of Defense Research and Development (DDR&D), aims to expand Israel’s domestic manufacturing capacity for advanced IR sensors across the full spectrum: short-wave (SWIR), mid-wave (MWIR), and long-wave (LWIR). 

The investment will substantially upgrade SCD’s production infrastructure, enabling the production of IR solutions for high-end applications, including area dominance, airborne payloads, space systems, and large-scale defense platforms.

For Israel, the move reflects a broader strategic priority: strengthening local defense manufacturing and reducing reliance on foreign suppliers for key technologies. Brig. Gen. (Res.) Dr Daniel Gold, head of the DDR&D 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 R&D division, emphasized that the investment will both increase manufacturing capacity and strengthen Israel’s technological capabilities for next-generation detectors. SCD infrared detectors are already widely integrated into the IDF electro-optical systems. Under the new agreement, production will be expanded to support larger-scale procurement, while also creating opportunities for future system development directed by the DDR&D’s R&D division.

From SCD’s perspective, the agreement secures its role as a central player in Israel’s defense technology ecosystem. CEO Kobi Zaushnizer said: “The enhanced capabilities will not only support future defense requirements but will also strengthen Israel’s industrial and technological independence in this critical field. Innovation in the IR domain is critical not only for national defense but also for our global partners.”

Expanding SCD’s infrastructure may also provide broader benefits for Israel’s defense-industrial base and could strengthen the country’s position on the global market for infrared systems, where technological leadership often translates into strategic advantage. 

By consolidating manufacturing domestically, the Ministry of Defense appears to be enhancing the local production base and supporting Israeli industries, ensuring full support for current and future IDF operational needs.