Israel’s SCD Secures $115 Million MoD Deal to Double Domestic Infrared Sensor Capacity—Strengthening Sovereignty and Global Reach
Misgav, Israel — September 1, 2025 : Semiconductor Devices (SCD), a premier Israeli manufacturer of infrared (IR) sensors and detectors, has formalized a multi-year strategic agreement with the Israeli Ministry of Defense (MoD) under the “Blue & White” initiative. Valued at approximately $115 million (380 million shekels), the contract is a decisive step toward enhancing Israel’s technological self-reliance and elevating its defense industrial base.
Scaling Up for the Full IR Spectrum
Under this ambitious plan, SCD will invest in expanding its cleanroom and manufacturing ecosystems to support cutting-edge IR semiconductor fabrication. The expansion ensures coverage across the full IR spectrum—including short-wave (SWIR), mid-wave (MWIR), and long-wave (LWIR)—with a balanced focus on both cooled and uncooled detectors.
The expected impact is profound: production capacity is set to double, enabling agile procurement and development cycles for advanced IR technologies.
Defense Ministry Backs Local Innovation
Brig. Gen. (Res.) Daniel Gold, head of the MoD’s Directorate of Defense Research and Development (DDR&D), emphasized the initiative’s broader vision:
“We are working to deepen Israeli independence across the entire value chain,” he said, noting that these breakthroughs ensure Israel’s technological superiority and qualitative edge.
Brig. Gen. Yehuda Elmakayes, DDR&D R&D Division head, underscored the capacity boost:
“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.”
CEO’s Vision: Israel at the Infrared Vanguard
SCD CEO Kobi Zaushnizer framed the deal as a reaffirmation of Israel’s defense commitments and sovereign technological capabilities:
“This agreement reflects our deep commitment to the strategic needs of the State of Israel and to maintaining our leadership in infrared technologies. The enhanced capabilities will not only support future defense requirements but will also strengthen Israel’s industrial and technological independence.”
Zaushnizer further cited SCD’s plans to strategically leverage the new infrastructure to serve global defense clients, aiding everything from airborne payloads to space systems and large-area platforms.
Strategic and Global Significance
Beyond boosting domestic self-sufficiency, the upgraded facilities position Israel as a more formidable IR supplier on the global stage. SCD—which operates in the full IR spectrum across cooled and uncooled technologies—will now be equipped to deliver advanced solutions for:
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Airborne systems
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Space-based platforms
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Area dominance architectures
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Large-scale defense systems
A Broader Context of Momentum
SCD’s present milestone follows a series of international successes. Earlier in 2025, the company secured over $40 million in contracts across Asia for MWIR and LWIR detectors integrated into armored fighting vehicle sights—highlighting its growing global footprint.
The MoD’s investment now complements these export wins, signaling robust domestic-backed confidence in SCD’s technology and manufacturing prowess.
Outlook: Infrared Sovereignty and Industry Leadership
Israel’s $115 million investment in SCD under the “Blue & White” initiative is more than procurement—it’s a bold bet on national industrial independence, long-term operational autonomy, and international competitiveness in IR technologies. With enhanced capacity and advanced manufacturing capabilities, SCD stands poised to:
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Fortify the IDF’s sensor and EO/IR systems
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Accelerate innovation timelines for next-gen platforms
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Serve as a key OEM partner to global defense integrators
As the global defense landscape evolves, Israel’s strategic investment ensures it remains at the forefront of infrared innovation—both at home and abroad.
