Program Description

The R&D infrastructure is aimed at accelerating research and development processes of photonic chips (PIC – Photonic Integrated Circuits) and accordingly will provide R&D services, consulting and design for Israeli corporations and/or Israeli research institutions.

The selected applicant will operate according to the Israel Innovation Authority program: Establishment and Provision of R&D Laboratories, Databases and Pilot Sites for Industry.

• Relevant Definitions: Integrated Photonics – a technology that enables integration of optical components such as lasers, waveguides, modulators and detectors on a single chip, thereby realizing compact, low-power, reliable and low-cost optical systems.

The objective of this call for proposals is to establish an R&D infrastructure which will serve, inter alia, as a knowledge center and provide R&D services for Israeli corporations and Israeli research institutions that intend to develop devices based on photonic chips. 

The R&D infrastructure will be required to provide end-to-end services for research and development of components and systems in integrated photonics, from definition of functionality and photonic architecture, through selection of an appropriate materials platform, performing simulations and design of basic components, and up to proof of feasibility. 

In addition, the R&D infrastructure will enable a variety of additional services independently or in collaboration, including development of prototypes and small-scale manufacturing, design of integration with electronic components, definition of testing and characterization processes throughout the R&D stages, provision of reliable support in photonic and electronic packaging, as well as support in transition to large-scale manufacturing in an industrial facility in Israel or abroad. 

The proposed R&D infrastructure must provide supporting R&D services for research and development processes in Israel, in particular: 

1. Initial Design: definition of system architecture, photonic and electronic design and integrative simulation. 
2. Prototyping: support at Technology Readiness Levels (TRL) 4-5, including rapid development cycles for proof of feasibility. 

 

Target Audience:

• • An industrial corporation, for the duration of the activity period as detailed in the program. 
  • A group of users, for the duration of the activity period as detailed in the program. 

 

Financing 

The total grant for an approved application shall be up to NIS 150 million for the period of the approved program, where the grant rate shall be 55% or 66% of the approved budget, as detailed in the Benefit Program. 

 

Criteria

Eligibility Criteria 

The eligibility conditions detailed below are cumulative conditions. The eligibility conditions must be met at the time of submission of the application and throughout the entire program execution period. 

Failure to meet any of the eligibility conditions shall be sufficient to result in disqualification of the entire application or cancellation of an approved program. 

1. The program, in all its components, shall be carried out in Israel by Israeli residents, unless the Research Committee is convinced, for reasons to be recorded, that it is essential that part of the program be carried out outside Israel or not by Israeli residents. 
2. Execution of the approved program shall be carried out by the applicant or by a party indicated by the applicant in the program, or by an executor approved according to the provisions of the Benefit Program. 
3. The program shall not be carried out pursuant to an order by another party, in exchange for full or partial payment granted against ownership rights in the knowledge or in the product. 
4. The applicant does not have an application for funding of an identical program, in whole or in part, which is examined in any of the benefit program of the Israel Innovation Authority, and/or does not have such application that was rejected within 6 months prior to submission. 
5. No financial support has been received for the execution of the project from a governmental entity or the Innovation Authority contrary to the provisions of this Benefit Program. 
6. The applicant is not under restricted accounts or insolvency proceedings. 
7. The applicant and controlling shareholders comply with minimum wage regulations. 
8. The applicant undertakes ownership over all knowledge and intellectual property created. 

Evaluation Criteria 

1. Extent of technological need for infrastructure equipment. 
2. Existence of market failure, technological gap or accessibility limitation. 
3. Capabilities of the applicant. 
4. Contribution to the Israeli economy. 
5. Growth potential. 
6. Terms of use, availability and pricing. 
7. Technological innovation level. 

Obligations of the Approved Applicant 

As detailed in the provisions of the Incentive Program, and in accordance with the above requirements regarding the establishment of the R&D infrastructure, as well as the requirements set forth below: 

• Since there is currently no single clearly dominant technology in the market, and due to the limited compatibility between certain materials, the R&D infrastructure shall provide solutions that enable integration among multiple materials and devices, or alternatively, a focused specialization in segments with proven economic and technological feasibility in the short to medium term. 

 

• Service level of the R&D infrastructure: publication of industry-standard service level agreements (SLA), and compliance with the following timelines:
  • Turnaround time (design-to-chip): three months.
  • Multi-Project Wafer (MPW) run frequency: once every three months.
  • Response to critical system failures: within 24 hours. 

 

• The establishment period of the R&D infrastructure shall not exceed 18 months and shall commence, at the latest, upon receipt of the approval letter from the Israel Innovation Authority. During this period, the planning, procurement, installation, and commissioning of the majority of the equipment shall be completed. In addition, within the first 12 months from receipt of the approval letter, the infrastructure shall begin providing R&D services (such as design, simulation, and consulting services, which are inherently not dependent on the completion of the physical production line). 

 

Application Process

Application Content: 

The application, including its appendices, shall include, inter alia, reference and responses to the aspects detailed below. It is clarified that this is not an exhaustive list and it constitutes only part of what is required in the application form. It is possible to expand and address additional issues not included in this list. 

• Scientific-technological aspects in the establishment of the infrastructure– response to the matters stated in this section shall be provided in Sections 3, 4, 8, and 9 of the application form.

 

• The need and the customers (Section 3): The existing and anticipated need shall be detailed with respect to the services to be provided, as well as the target audience of potential users, taking into consideration the analysis conducted by the applicant, with regard to demonstrating the need and the contribution to the Israeli industry. Reference shall also be made, inter alia, to existing alternatives and to the relative advantage in Israel.

 

• The R&D infrastructure, uniqueness and innovation, barriers to entry and market failures, regulation/standards (Section 4): 
  • The purpose of the R&D infrastructure, its uniqueness and innovation, or those of the R&D services to be provided by it, shall be detailed, as well as a comparison with existing alternatives locally and globally.

 

• Compliance with standards: Management of production and maintenance of equipment and processes at the level of an industrial fab, in accordance with standards accepted in the field worldwide (including preventive maintenance, process control, redundancy, etc.).

 

• Infrastructure equipment (Section 8): The relevant infrastructure equipment and its suitability for the services to be provided by the R&D infrastructure shall be detailed as the following:
  • A plan for the availability of the machine array, reference to redundancy of the machines, spare parts, and provision of solutions for downtime of equipment, power outages, or other infrastructure failures.
  • Details of the required infrastructure envelope for establishment and ongoing operation (services, physical infrastructure, and equipment), taking into consideration the analysis conducted by the applicant regarding the existence of a market failure or other limitation preventing the acquisition of such equipment outside the framework of a grant provided by the Israel Innovation Authority.

 

• The services (Section 9):
  • The R&D services that the applicant will make available to users (types of services, service domains) shall be detailed, with emphasis on services that cannot currently be effectively obtained (financially and operationally) from other existing infrastructures locally/globally, in academia/industry.
  • The detailing of the services shall include information regarding the date on which services will commence and expected usage costs.

 

• Provision of a comprehensive response to all stages of R&D in the field of integrated photonics a comprehensive response will be provided to each of the following stages, independently or on the basis of collaboration: 

1. 1. 1. Design & Simulation stage: Accessibility to simulation software tools and design services, whether internal or through design experts. In addition, it shall be specified whether the service will include the possibility of transforming a customer concept into a full chip and/or package design, as required.
      2. R&D and small-scale manufacturing stage: Development of a process for sample production, product prototyping, and small-scale manufacturing; installation of infrastructure, procurement and installation of equipment, development processes, and manufacturing processes in the pilot line. In addition, it shall be specified whether characterization and metrology services will be provided using dedicated equipment, with the possibility of using complementary R&D infrastructures of partners in academia or industry.
      3. Mass manufacturing stage: The expected plan regarding how agreements or collaborations with manufacturing facilities (Foundries) enabling serial production in medium and high volumes beyond the response provided by the proposed R&D infrastructure, based on the success of the R&D, shall be detailed.
      4. Packaging stage: Details shall be provided regarding the expected solutions for dedicated packaging, relying on subcontractors specializing in optical and electronic packaging, for the R&D and manufacturing stages.
      5. Testing stage: Details shall be provided regarding characterization and validation using dedicated equipment, with the possibility of using complementary R&D infrastructures of partners in academia or industry for both R&D and manufacturing stages.

 

• Integration of materials and devices (Hybridization):
  • The capability of the R&D infrastructure to integrate different materials and devices on a wafer/chip shall be detailed, with emphasis on their technological and business maturity, taking into consideration the integrated photonics market characterized by high heterogeneity and fragmentation into a variety of materials and technological sub-segments.
  • In addition, the technological “roadmap” regarding different materials and devices shall be detailed, demonstrating the ability to provide the services specified above, including compliance with SLA, with respect to each type of material and device to be proposed.

 

• Managerial-operational aspects– response to the matters stated in this section shall be provided in Sections 5, 6, 12, and 13 of the application form.

 

• Human resources: Details shall be provided regarding the personnel to be employed in the R&D infrastructure and their experience in chip design, process development and control, equipment operation and maintenance, chip characterization, photonic packaging, and the management and operation of an industrial chip facility.

 

• Collaborations:
  • Details of the applicant’s strategic partners and subcontractors, and their contribution to the establishment of the infrastructure and the development of R&D services.
  • Details of experience, familiarity, and ability to promote strategic collaborations in industry and academia in the context of equipment and knowledge.
  • Details of additional connections and partnerships with high-tech industry and academia in Israel and abroad.
  • Details of the process and manner of training human resources for research, development, support, operation, etc., in the field of activity of the R&D infrastructure.
  • Details of the manner of providing services to industrial corporations and research institutions, including aspects relating to ownership of intellectual property.

• Location of the infrastructure: Reference shall be made to the expected location of the R&D infrastructure and the reasons for its establishment in the specified geographical area.

 

• Timelines: A detailed work plan shall be presented relating to the stages of planning, procurement, acquisition, installation of equipment, and operation and qualification of the equipment, development processes for each item of equipment, and the capability for testing, characterization, and qualification of a full process.

 

• Budgetary/economic aspects– response to the matters stated in this section shall be provided in Sections 10 and 11 of the application form and in the Excel file constituting its appendix.

 

• Business plan: Details of the operational concept for the near term (including the Israel Innovation Authority grant) as well as the subsequent period (independent sustainability of the infrastructure – sales, revenues, profitability).

 

• Business development: Presentation of capabilities and a business and marketing plan based on the presentation of a clear and feasible value proposition for the needs of the local market, alongside differentiation and specialization that will enable the realization of current and future potential of customers from Israel and abroad, following the establishment of a reputation in Israel. In addition, actions to make the infrastructure accessible to various users shall be presented.

 

• Business model: 
• • The applicant shall present a sustainable economic model for the near term of 3 years, during the period of the approved program, as well as for the subsequent period for independent sustainability. 
  • The model shall present profitability and return metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), cash flow (CF), and the number of years for return on investment.
  • The model shall address complementary financing in the current and future situation (as required).
  • The model shall present sources of revenue from services to be provided by the infrastructure from the first year.

 

•  Competitive advantage: Presentation of the competitive advantage of the pilot line compared to what currently exists in the field.

 

• Pricing of services (expected service price): 
• • Details of the expected process for determining the level of payment from potential users, taking into consideration global competition in the provision of such services, and in accordance with the above requirements for the establishment and operation of the infrastructure.
  • Details of the costs of managerial and technological personnel, inter alia, in aspects relating to the need for their training prior to the commencement of service provision by the R&D infrastructure. 

Notes:
All of the above, including with respect to the submission of applications, their examination, the decision regarding approval or rejection of applications, the granting of benefits, and the obligations and rights of the beneficiary (including with respect to knowledge and intellectual property, reporting and payment of royalties), shall be in accordance with the provisions of the Innovation Law, the relevant Incentive Program, and the procedures established thereunder (including those published in the incentive program procedures section). 

 

Application Submission Procedure: 

1. The deadline for submission of applications is 8 October 2026 at 12:00 noon. It is clarified that applications submitted after this deadline shall not be accepted. 
2. The Incentive Program and the relevant procedures shall be read carefully, and compliance with the threshold conditions in their full wording shall be ensured. 
3. The instructions set forth in the Incentive Program, the relevant procedures, and this notice shall be followed. 
4. The application shall be submitted in the personal area, using the application form of the Incentive Program. 
5. This call for proposals page shall be monitored for updates regarding the procedure, if any. 
6. Nothing in this notice shall constitute a commitment to approve any application submitted.