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SCD and Israel MOD Launch Strategic Program Valued at Approximately $115 Million to Drive Infrared Innovation and Manufacturing Breakthroughs

Misgav, Israel September 1, 2025 Photo(s): By SCD
SCD's Lithography cleanroom

SCD (Semiconductor Devices), a global leader in infrared sensors, has signed a multi-year strategic contract with the Israel Ministry of Defense (IMOD). The agreement, signed under the "Blue & White" initiative, supports Israel's national goal of strengthening domestic defense industries and securing access to the most advanced technologies for future defense needs.

The strategic program, valued at approximately $115 million, focuses on a substantial expansion of SCD's cleanroom facilities and manufacturing infrastructure. It will enable the development and production of next-generation infrared (IR) sensors across the full IR spectrum – SWIR, MWIR, and LWIR.

As part of this initiative, SCD will double its current production capacity, with a strong emphasis on both cooled and uncooled IR detectors. The investment will bring in cutting-edge fabrication methods and advanced IR semiconductor technologies, positioning SCD at the forefront of global infrared innovation.

Kobi Zaushnizer, CEO of SCD

"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, the program also carries global strategic significance. As a leading OEM supplier of infrared detectors and modules, SCD will leverage its expanded capabilities to serve major defense manufacturers worldwide. The upgraded infrastructure and technology will drive innovation and deliver next-generation IR solutions tailored to the most demanding operational needs across the globe, supporting a broad range of high-end applications, including area dominance, airborne payloads, space systems, and large-scale defense platforms.

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

Head of the IMOD Directorate of Defense Research and Development, Brig. Gen. (Res.) Dr. Daniel Gold: "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."

Head of the DDR&D R&D Division, Brig. Gen. Yehuda Elmakayes: "The IMOD and SCD's investment in establishing new infrastructure and expanding production will enable increased manufacturing capacity and advanced technological capabilities for next-generation IR detectors in the coming years. 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."