The Canadian government has committed up to C$210m ($150m) to a semiconductor manufacturing and research initiative involving IBM Canada’s Bromont plant and the MiQro Innovation Collaborative Centre (C2MI).

This federal investment is part of a C$662m project that will expand advanced semiconductor packaging, assembly, and commercialisation operations at the Bromont facility in southern Quebec.

The government expects this funding to increase domestic capacity for packaging and testing next-generation semiconductors, supporting local supply chain resilience, and the commercialisation efforts of the two firms.

Marc-Aurèle-Fortin Member of Parliament and Minister of Industry Parliamentary SecretaryCarlos Leitão said: “The funding announced today is a major investment that will benefit Quebec’s innovative semiconductor sector and all of Canada as well.

“Our government is supporting the industries of the future that ensure the success of our strategic economic hubs, protect good jobs in the regions and generate tangible economic benefits. Together, we are building a stronger, more resilient and greener Canada for everyone.”

IBM will enhance its capabilities at Bromont by developing complex semiconductor packaging for advanced transistors, responding to demand for improved device performance and efficiency.

The Bromont site is said to produce more than 100,000 microelectronic devices each week, maintaining its position as one of North America’s largest facilities focused on chip research, assembly, and production.

IBM Canada president Deb Pimentel said: “IBM’s Bromont plant has upheld the company’s proud tradition in semiconductor research and development for more than five decades.

“It is one of North America’s largest electronic chip assembly and testing facilities, and it plays an essential role in IBM’s manufacturing sector alongside the plants in Poughkeepsie, Albany and Yorktown.”

C2MI provides infrastructure, advanced scientific equipment, and access to an ecosystem of nearly 400 organisations across multiple sectors, supported by an experienced professional team.

C2MI CEO Marie-Josée Turgeon said: “The projects announced today are a major strategic step forward for C2MI and for the entire semiconductor ecosystem in Quebec and across Canada. 

“It can never be said enough: Semiconductorsare ubiquitous in every economic sector and contribute to national advances in areas like artificial intelligence, quantum technologies and defence.”

According to the Canadian government, the investment is part of a broader effort to secure access to strategic technology inputs such as AI and high-performance computing chips. In 2022, Canada’s AI sector attracted more than C$8.6bn in venture capital.

In April 2024, IBM and both federal and Quebec governments formalised their partnership aimed at reinforcing North American chip supply chains by scaling up assembly, testing, and packaging activity at Bromont.