Investing in semiconductors to create jobs, economic growth, and new opportunities

BROMONT, QC, April 26, 2024 /CNW/ - Semiconductors power the world. From computers to medical equipment, to electric vehicles, semiconductors – or microchips – produce so much of what we depend on. They are also critical in the global race to scale up and adopt artificial intelligence, quantum computing, and other emerging technologies that have the potential to transform our economies.

As global supply chains adapt to meet increasing demand, we can leverage Canada's innovation and talent to grow our microchip industry, create high-paying jobs for Canadians, and become a global leader in semiconductor manufacturing.

The Prime Minister, Justin Trudeau, today announced a new federal investment of $59.9 million to support projects from IBM Canada and the MiQro Innovation Collaborative Centre (C2MI), one of Canada's microelectronics research and innovation leaders, to create more semiconductors and unlock economic growth.

These projects, with a total value of $226.5 million, will support research into ground-breaking quantum technologies, add new manufacturing capacity and capabilities to IBM Canada's semiconductor packaging facility in Bromont, Quebec, and strengthen the semiconductor supply chain in Canada. They will also drive significant growth for Quebec and create more than 280 new highly skilled jobs in the Bromont region. At the same time, IBM Canada and C2MI will help foster the next generation of Canadian innovators in semiconductor packaging and quantum technologies by offering up to 240 co-op positions.

Combined with additional support from the Government of Quebec, this federal investment, made through the Strategic Innovation Fund, will help IBM Canada keep pace with the market, attract new clients to its Bromont facility, and contribute to a strong domestic production of the semiconductor products that businesses and consumers need. It will also help secure good jobs for Canadians and bring modern, ground-breaking technologies to our shores – furthering semiconductor and quantum research in Canada. This is about investing in innovation to build a strong semiconductor sector in Canada, grow our economy, and create new opportunities for this generation and the next.

"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."

— The Rt. Hon. Justin Trudeau, Prime Minister of Canada

"Semiconductors are part of our everyday life. They are in our phones, our cars, and our appliances. Through this investment, we are supporting Canadian innovators, creating good jobs, and solidifying Canada's semiconductor industry to build a stronger economy. Canada is set to play a larger role in the global semiconductor industry thanks to projects like those we are announcing today. Because, when we invest in semiconductor and quantum technologies, we invest in economic security."

— The Hon. François-Philippe Champagne, Minister of Innovation, Science and Industry

"For Bromont and our regional economy, this investment is transformative. Canada and Quebec's global-leading semiconductor development will give us a leading edge. This initiative not only drives economic growth but also fosters good, innovative jobs. Our hub of green innovation is powered by exceptional talent that will develop key technologies ranging from next-generation vehicles to electronics to medical devices. It shows the vital role that governments can play in stabilizing our future during supply chain disruptions. With strong partnerships like those with IBM and C2MI, we are securing a brighter future and ensuring we are prepared for whatever comes next."

— The Hon. Pascale St-Onge, Minister of Canadian Heritage

"IBM's investment in Bromont wll ensure that Quebec continues to stand out in the industry of microelectronics. This increase in production capacity will solidify Quebec's position within the strategic sector of microelectronics in North America."

— Pierre Fitzgibbon, Quebec's Minister of Economy, Innovation and Energy

"Advanced packaging is a crucial component of the semiconductor industry, and IBM Canada's Bromont plant has led the world in this process for decades. Building upon IBM's 107-year legacy of technology innovation and R&D in Canada, the Canadian semiconductor industry will now become even stronger, allowing for robust supply chains and giving Canadians steady access to even more innovative technologies and products. This announcement represents just one more example of IBM's leadership and commitment to the country's technology and business landscape."

— Deb Pimentel, President, IBM Canada

"IBM has long been a leader in semiconductor research and development, pioneering breakthroughs to meet tomorrow's challenges. With the demand for compute surging in the age of AI, advanced packaging and chiplet technology is becoming critical for the acceleration of AI workloads. As one of the largest chip assembly and testing facilities in North America, IBM's Bromont facility will play a central role in this future. We are proud to be working with the governments of Canada and Quebec toward those goals and to build a stronger and more balanced semiconductor ecosystem in North America and beyond."

— Darío Gil, Senior Global Vice-President, IBM

"We are unquestionably entering an era of quantum revolution, where perspectives are multiplying and are confined only by those of the collective imagination. C2MI's new quantum chip manufacturing capabilities, as announced today, will complement the state-of-the-art infrastructure and core technologies currently in place, bringing us one step closer to developing hardware for domestic companies. With these new equipments, C2MI, in collaboration with its partners, is poised to develop and produce quantum chips, paving the way for a resolutely cutting-edge future that will ensure both Quebec's and Canada's competitiveness and leadership in this field."

— Marie-Josée Turgeon, President and Chief Executive Officer, MiQro Innovation Collaborative Centre (C2MI)

• This new Strategic Innovation Fund investment builds on the commitment announced by Prime Minister Trudeau and the President of the United States of America, Joe Biden, in March 2023 to advance a cross-border semiconductor manufacturing corridor, beginning with Canada and IBM providing a significant investment to develop new and expanded packaging and testing capabilities at its Bromont facility.
• The Strategic Innovation Fund is in place to support research, development, and commercialization of new products that pave the way for Canada as a global innovation leader and attract investments that create jobs. The Government of Canada launched the Strategic Innovation Fund in Budget 2017 to ensure Canada remains a top destination for businesses to invest, grow, and create jobs.
• This announcement also builds on other recent federal initiatives to support and grow Canada's semiconductors supply chain, including:
  • Providing $90 million to the National Research Council of Canada's Canadian Photonics Fabrication Centre, to update its capacity as Canada's only pure play compound semiconductor foundry and enhance its ability to better meet Canadian and global client demand.
  • Providing $36 million through the Strategic Innovation Fund to Ottawa-based company Ranovus Inc., to advance the domestic production and manufacturing of semiconductor products and services.
  • Launching the Semiconductor Challenge Callout, a $150 million allocation from the Strategic Innovation Fund, to bolster the development and manufacturing of semiconductors in Canada. Funding was increased to $250 million in March 2023.
• Semiconductors are critical to Canada's national security, economy, and technological interests. Nearly every industry ? including automotive and electric vehicles, defence, telecommunications, and low-carbon technologies ? requires semiconductors for current technologies and future innovations.
• Canada's semiconductor sector includes over 500 homegrown and multinational companies conducting research, development, and manufacturing of microchips. This includes over 100 design firms, 30 applied research laboratories, and five manufacturing facilities in areas such as compound semiconductors, microelectromechanical systems, and advanced packaging.
• In Budget 2024, the Government of Canada announced a $2.4 billion package of measures to secure Canada's AI advantage. These investments will accelerate job growth in Canada's AI sector and beyond, boost productivity by helping researchers and businesses develop and adopt AI, and ensure this is done responsibly. Learn more.
• With over 282,000 employees working across 175 countries, IBM is one of the world's largest and longstanding information technology products and services companies. IBM Canada's semiconductor advanced packaging facility in Bromont, Quebec, is the largest manufacturing facility of its kind in North America.
• Based in Bromont, Quebec, the MiQro Innovation Collaborative Centre (C2MI) plays an important role within Canada's semiconductor industry by offering a unique infrastructure, state-of-the-art scientific equipment, a network of nearly 400 organizations covering countless sectors, and a team of seasoned and talented professionals. It is the essential link between applied research and the accelerated commercialization of microelectronic components.

• The Canadian semiconductor industry
• Strategic Innovation Fund
• IBM Canada
• MiQro Innovation Collaborative Centre (C2MI)

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

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