Israel backs NIS 150 million photonic chip infrastructure push

Israel’s Innovation Authority and the Defense Ministry’s DDR&D have opened a call for proposals for a national integrated photonics R&D infrastructure with up to NIS 150 million in support. The move aims to speed development of next-generation photonic chips and close the gap between research and manufacturing in a strategic semiconductor segment. Why it matters: - Integrated photonics is emerging as a core semiconductor technology with uses in communications, data centers, sensing, defense and manufacturing. - Israel is trying to build a national platform that can move photonics projects from research to commercial products faster. - The initiative targets a key weakness in deep tech: limited access to late-stage testing, integration and manufacturing infrastructure. What happened: - The Israel Innovation Authority and the Directorate of Defense Research & Development (DDR&D/MAFAT) at the Ministry of Defense launched a call for proposals to establish or operate advanced integrated photonics R&D infrastructure. - The program includes investment of up to NIS 150 million. - The call is meant to accelerate next-generation photonic chips in Israel and expand access to advanced R&D infrastructure for industry and academia. - The initiative was announced in Jerusalem on June 15, 2026. The details: - The selected infrastructure will support the full development chain, including design, simulation, prototype development, characterization, testing, packaging and support for volume manufacturing in Israel or abroad. - Eligible applicants are industrial corporations or groups of companies. - Applications must include a technology plan, business plan, collaboration framework, sustainable operating model and a plan to make the infrastructure accessible to multiple users in industry and academia. - The selected facility will need to meet industrial standards for turnaround times, run frequency, service availability and support for multiple materials and devices. - The establishment period cannot exceed 18 months. - Partial R&D services must begin within 12 months of approval, before full completion. - Funding will come through the Israel Innovation Authority’s R&D infrastructure fund. - The selected infrastructure can receive an establishment, deployment and accessibility grant covering 55% or 66% of the approved budget for three years. - After that period, the infrastructure will operate as a for-profit R&D services company. Between the lines: - Dror Bin, CEO of the Israel Innovation Authority, said integrated photonics is expected to become one of the semiconductor industry’s core technologies and that advanced infrastructure is needed to turn knowledge into products and growing companies. - Brig. Gen. (Res.) Dr. Daniel Gold, head of DDR&D, said the collaboration is meant to strengthen Israel’s capabilities and create a national asset for research, industry and defense. - The program reflects a broader effort to reduce the gap between Israeli research strength and limited access to late-stage production tools. - An open, shared infrastructure model could lower barriers for startups and growth-stage companies that cannot build these capabilities alone. What’s next: - The government will review proposals from industrial corporations or company groups. - The selected operator will have up to 18 months to establish the infrastructure and must begin partial service within 12 months. - If successful, the platform is expected to shorten development cycles, reduce technical risk and speed commercialization of photonics technologies. The bottom line: - Israel is betting that a shared national photonics lab can help turn early-stage breakthroughs into exportable products and strengthen its semiconductor position.