Canada will soon be building more semiconductors, thanks to two separate investments in American chipmakers in Québec and Ontario.
The first investment, from the federal and Québec governments, will provide IBM and an associated research and development centre with up to a combined $405 million in funding to support a $1-billion, five-year development of IBM’s semiconductor assembly plant in Bromont, Qué.
With the funding, IBM will be able to develop and assemble more complex semiconductor packaging for the latest generation of transistors.
The funding builds on an $85-million investment from the two governments last year, which supported the project’s initial $187-million phase. This time around, a federal investment of up to $210 million is coming from the Strategic Response Fund (SRF), an evolution of the former Strategic Innovation Fund (SIF), to expand the Bromont facility’s semiconductor packaging and commercialization capabilities. The funding also supports the MiQro Innovation Collaborative Centre (C2MI), a nearby semiconductor research and development centre that collaborates with IBM.
For its part, Québec is giving $101 million to IBM for the plant and $74 million to C2MI. The federal government’s renewed financial support for the facility was first reported by The Logic in May.
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The federal government said that, with the funding, IBM will be able to develop and assemble more complex semiconductor packaging for the latest generation of transistors, providing improved performance in modern electronic devices.
“By investing in Canada’s domestic capabilities with IBM and C2MI, the Government of Canada is not only bolstering our supply chain but also positioning Canada as a global leader in high-value semiconductor technology,” Canada’s AI minister, Evan Solomon, said in a statement.
The second announcement, from Ontario’s government, provides Marvell Technology with up to $17 million through the Invest Ontario Fund for its $238 million expansion project in Ottawa and the Greater Toronto Area.
The five-year expansion project will see it open a new office in Toronto, establish a new 8,000-square-foot optical lab, and scale its semiconductor research and development operations in Ottawa and the York region.
With Invest Ontario’s support, the expansion is set to create up to 350 jobs, according to the province.
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“Ontario offers a vast pool of professionals with expertise in the latest semiconductor and AI technologies, and we are delighted to bring new talent into the company to help extend our leadership position in next-gen, advanced AI data centre infrastructure solutions,” Marvell data centre group president Sandeep Bharathi said in a statement.
The news that two US semiconductor projects would receive significant Canadian funding comes not long after the federal government took fire from industry leaders for supporting foreign multinationals over Canadian firms, like the support of Nokia’s research and development centre expansion in Ottawa.
Shopify CEO Tobi Lütke called the Nokia funding a “bribe” and foreign direct investment projects “toxic” for tech, though he conceded that partnering with foreign multinationals can be a valid strategy for factory and manufacturing jobs.
Feature image courtesy Government of Ontario.