Stoichiometric pure and tellurium (Te) doped indium bismuthide (InBi) were grown using the directional freezing technique in a fabricated furnace. The X-ray diffraction profiles identified the crystallinity and phase composition. The surface topographical features were observed by scanning electron microscopy and atomic force microscopy. The energy dispersive analysis by X-rays was performed to identify the atomic proportion of elements. Studies on the temperature dependence of dielectric constant (ε), loss tangent (tanδ), and AC conductivity (σac) reveal the existence of a ferroelectric phase transition in the doped material at 403 K. When InBi is doped with tellurium (4.04 at%), a band gap of 0.20 eV can be achieved, and this is confirmed using Fourier transform infrared studies. The results thus show the conversion of semimetallic InBi to a semiconductor with the optical properties suitable for use in infrared detectors.