Ottawa and Quebec are spending nearly $100 million to increase the country’s manufacturing capacity for semiconductors while adding new manufacturing capacity for an IBM Canada plant.
Ottawa will invest $59.9 million to help fund IBM Canada’s semiconductor packaging plant in Bromont, Que., Prime Minister Justin Trudeau told reporters in the small town located 70 kilometres southeast of Montreal.
The federal investment would create 280 new jobs and open 240 co-op positions for students as part of the investment, he said.
“These microchips are the basis of everything, we have them in our computers, in our telephones, and in our medical equipment,” Mr. Trudeau said at the April 26 press conference.
“Today’s announcement is a massive win for Canada and our dynamic tech sector. It will create high-paying jobs, invest in innovation, strengthen supply chains, and help make sure the most advanced technologies are Canadian-made. Semiconductors power the world, and we’re putting Canada at the forefront of that opportunity.”
Quebec will provide $38.9 million in loans to help the company purchase equipment and boost capacity of the Bromont plant, one of the largest chip assembly and testing facilities in North America. It has operated in the region for 52 years.
IBM president Deb Pimentel said the funding would make the Canadian semiconductor industry “even stronger.”
It will allow “for robust supply chains and [give] Canadians steady access to even more innovative technologies and products,” she said in a press release.
The MiQro Innovation Collaborative Centre (C2MI), also located in Bromont, will benefit from the new funding to conduct research. In total, the projects are said to be worth roughly $226.5 million.
Mr. Trudeau and Mr. Biden later reaffirmed their commitment to cooperation regarding semiconductors, with the U.S. promising $50 million in additional money in the Defense Production Act to invest in American and Canadian companies producing advanced packaging for semiconductors and printed circuit boards.
Canada, meanwhile, provided $250 million for semiconductor projects from the Strategic Innovation Fund. The April 26 announcement by the prime minister follows on from that March 2023 agreement with the new $59.9 million investment also being made through the Strategic Innovation Fund.
Semiconductor chips serve a variety of functions in telecommunications, automotive manufacturing, and defence. While the industry has previously been dominated by countries in Asia, such as China, the COVID-19 pandemic provoked a trend of returning manufacturing to North America due to supply chain disruptions during the pandemic.
Several Canadian tech organizations formed the Semiconductor Industry Leadership and Innovation Canada Action Network in June of 2023 to advocate for the semiconductor industry in Canada.
“Strengthening Canada as a semiconductor player complements those existing commitments, as well as those in critical minerals,” he said.
The council called on the federal government to invest more into incentives for the semiconductor sector after noting that Europe and countries like South Korea have invested billions in the industry, while Canada offered few new incentives in the 2023 budget.
