The federal, Quebec and Ontario governments are promising millions to IBM and Marvell's Canadian semiconductor projects.
Canada will soon produce more semiconductors thanks to two separate investments in U.S. chipmakers in Quebec and Ontario.
The first investment from the federal and Quebec governments will provide IBM and its associated research and development center with a total of up to $405 million to support the five-year, $1 billion development of IBM's semiconductor assembly plant in Bromont, Que.
With this funding, IBM will be able to design and assemble more complex semiconductor packages for the latest generation of transistors.
The funding is based on an investment of $85 million from the two governments. last yearwhich supported the initial phase of the $187 million project. This time, federal investment of up to $210 million will come from the Strategic Response Fund (SRF), an evolution of the former Strategic Innovation Fund (SIF) to expand the semiconductor packaging manufacturing and commercialization capabilities of the Bromont facility. The funding also supports the MiQro Center for Innovation Collaboration (C2MI), a nearby semiconductor research and development center that partners with IBM.
For its part, Quebec will provide $101 million to IBM for the plant and $74 million to C2MI. Renewed financial support for the facility from the federal government was first reported from The Logic in May.
The federal government said the funding will enable IBM to design and assemble more complex semiconductor packaging for the latest generation of transistors that deliver improved performance in today's electronic devices.
“By investing in Canada's domestic capabilities through IBM and C2MI, the Government of Canada is not only strengthening our supply chain, but also positioning Canada as a global leader in high-value semiconductor technologies,” said Canadian Artificial Intelligence Minister Evan Solomon.
The Ontario government's second announcement will provide Marvell Technology with up to $17 million through the Invest Ontario Fund for a $238 million expansion project in Ottawa and the Greater Toronto Area.
As part of the five-year expansion project, the company will open a new office in Toronto, create a new 8,000-square-foot optical laboratory and expand its semiconductor research and development in Ottawa and the York region.
With support from Invest Ontario, the expansion will create up to 350 jobs, according to the province.
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“Ontario offers a deep pool of professionals with expertise in the latest semiconductor and artificial intelligence technologies, and we are excited to bring new talent to the company that will help strengthen our leadership position in advanced infrastructure solutions for the next generation of data centers,” Sandeep Bharati, president of Marvell's data center group, said in a statement.
News that two American semiconductor projects will receive significant Canadian funding comes shortly after the federal government caught fire from industry leaders for supporting foreign multinationals over Canadian firms, such as supporting the expansion of Nokia's research and development center in Ottawa.
Shopify CEO Tobi Lütke called Nokia's funding a “bribe” and foreign direct investment projects “toxic” for technology. although he admitted that partnering with foreign multinationals can be a viable strategy for factory and manufacturing jobs.
Image courtesy of the Government of Ontario.
