The workshop was located in the underground basement of a residential building in the city of Hebron.
IDF forces confiscated 15 lathes for producing guns, dozens of Carl Gustav-style guns, parts of M-16 rifles and large quantities of ammunition, according to an IDF colonel who took part in the raid.
The owner of the factory and his son were arrested by the IDF.
In the past year, Israeli security forces have shut down 40 gun-making workshops, which manufactured guns such as those used in the Sarona Market shooting terror attack in Tel Aviv in June.
Since a nearly year-long wave of terrorist attacks began in October 2015, Israeli security forces have carried out nightly arrests of Palestinians in the West Bank possessing weapons and involved in gun manufacturing and smuggling.
Israeli security forces have also confiscated over 420 guns during this time, according to an IDF spokesperson.