Israel has stepped up efforts to turn quantum research and integrated photonics into domestic industrial capacity, combining a state-backed NIS150 million infrastructure call with the launch of Qubit IL’s first Quantum Launchpad for early-stage ventures.The twin moves mark a sharper focus on hardware capability in a technology sector long dominated by software, cyber and defence electronics. The Israel Innovation Authority and the Ministry of Defence’s Directorate of Defence Research and Development, known as MAFAT, are seeking proposals to establish or operate a small-scale integrated photonics manufacturing and R&D infrastructure. The call is open until 8 October 2026 and is designed to support companies and research institutions developing photonic chips.
The selected operator will be expected to provide end-to-end services, including design, simulation, prototyping, testing, packaging and support for transition to volume manufacturing. Grant support can cover 55% or 66% of approved expenditure, up to NIS150 million over the approved programme period. Partial R&D services must begin within 12 months of approval, while the full establishment phase must not exceed 18 months.
Integrated photonics brings optical components such as lasers, waveguides, modulators and detectors onto a single chip. The technology is becoming increasingly important for high-speed communications, data centres, sensors, semiconductor equipment, secure systems and quantum devices, as computing infrastructure faces mounting pressure from artificial intelligence workloads and power-intensive cloud architecture.
For Israel, the initiative addresses a practical gap between strong academic research and the expensive industrial infrastructure required to move hardware from laboratory prototypes to manufacturable products. Photonic chips need specialised design flows, materials know-how, wafer processing, packaging and characterisation. These are costly capabilities for individual start-ups to build on their own, especially at proof-of-concept and pilot-line stages.
The public funding call is being paired in the wider ecosystem with Qubit IL’s Quantum Launchpad, launched with GUTS – Harel Innovation Hub. The programme is aimed at quantum entrepreneurs and early-stage start-ups working across computing, sensing and communications, including both hardware and software. Selected teams receive legal, intellectual property and business guidance, exposure to the local quantum network, mentor access and investor introductions.
The first launch event brought together founders, venture funds, government representatives, academics and established quantum executives. Five start-ups were named for the first cohort: Qubicalz, QUEEN, QSphera, PHOTONIQX and TrafixCT. Their selection underlines the attempt to organise quantum commercialisation around a broader support structure rather than isolated research spinouts.
The timing reflects a global race to secure critical quantum and semiconductor supply chains. Quantum technology start-up investment surged in 2025, while governments have begun committing larger sums to domestic infrastructure and strategic production capability. The United States has moved to support quantum firms through a $2 billion programme tied to CHIPS Act incentives, while Europe, China and other technology blocs are treating quantum hardware, photonics and advanced computing as strategic sectors.
Israel’s own quantum push has been built over several years through public programmes, university research groups and companies such as Quantum Machines and Classiq. The Israeli Quantum Computing Center at Tel Aviv University, opened in 2024 by Quantum Machines with state backing, gave researchers and companies access to multiple quantum computing technologies alongside high-performance computing resources. The new photonics call extends that approach into fabrication-adjacent infrastructure, where access and turnaround time can determine whether hardware firms survive the early development cycle.
The model being pursued is not a conventional research grant. Applicants must present technical, business and operating plans, show how the infrastructure will serve multiple users, and demonstrate a sustainable service model. The future operator is expected to publish industry-standard service terms, offer three-month design-to-chip turnaround, run multi-project wafers once every three months and respond to critical system failures within 24 hours.
That structure reflects the commercial demands of deeptech hardware. Venture-backed quantum and photonics companies need rapid iteration, defensible intellectual property and credible validation before customers or strategic investors commit. Academic groups need access to industrial-grade processes without losing control of research outputs. Larger companies need facilities that can help them test components before committing to more expensive production routes.
The programme also carries execution risks. Shared infrastructure can become difficult to manage when start-ups, universities and larger industrial users compete for access. Intellectual property boundaries must be clear, pricing must remain viable for early-stage companies, and the operator will need enough demand beyond quantum to keep utilisation high. Photonics markets are broad, but many applications require different materials platforms, packaging methods and performance standards.
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