Ukrainian defense technology companies The Fourth Law and Odd Systems have announced a new initiative for large-scale production of thermal imaging sensors in Europe and the United States. Initial manufacturing is planned for 2027.
The news is significant for a few reasons: it helps create more non-Chinese supply chain production resilience for a critical drone component Ukraine and others use in military drones; it is another development showing how Ukraine companies are putting down more roots outside the country; and it underscores how they are trying to diversify business away from one main customer, the Ukrainian military.
The companies have not disclosed the project’s estimated cost, committed funding, manufacturing partners or specific facility locations.
Yaroslav Azhnyuk, CEO of The Fourth Law and co-founder of Odd Systems, emphasized the urgency of establishing independent thermal sensor production.
“It is imperative that we provide sensor sovereignty for the EU and US on the shortest timeline possible,” he said in a statement.
Announced on October 8, Project Foundation aims to quadruple Europe’s current thermal sensor production and double US production within three years, reducing Western dependence on China for these components.
The initiative will focus on developing and manufacturing uncooled long-wave infrared (LWIR) sensors (microbolometers). These components enable thermal cameras to detect heat signatures without requiring complex cooling systems, making them particularly suitable for drones.
Beyond defense applications, the companies envision supplying sensors for autonomous vehicles, industrial equipment and robotics.
The initiative comes amid growing concerns over dependence on Chinese thermal imaging technology.
According to market research firm Yole Group, Chinese manufacturers accounted for 60% of global uncooled LWIR sensor shipments in 2024, up from just 18% in 2019. Over the same period, worldwide shipments doubled from approximately 1.6 million to 3.2 million units.
While US and European manufacturers produce microbolometers for military applications, supplying them at the price and scale required for mass-produced, attritable drones remains a challenge.
Headquartered in Eindhoven, Netherlands, Project Foundation plans to establish a transatlantic manufacturing network combining existing partner foundries with purpose-built facilities.
Its first two planned manufacturing facilities, named First Foundation and Second Foundation, will be located in Europe and the United States, respectively. Both will use a shared technology base and proprietary sensor designs.
“Building thermal cameras has shown us what manufacturers need from the sensor inside: performance, a reliable supply and a price that works at scale,” said Igor Nakonechnyi, CEO of Project Foundation.
“Sovereign production has to be commercially competitive to achieve widespread adoption,” he added.
The project intends to draw financing from investments by The Fourth Law and Odd Systems, external equity, debt, grants and customer pre-sales.
