IBM plans to invest $730 million to expand its semiconductor business in Canada
IBM will invest over CAD 1 billion (approximately USD 730 million) in the next five years to expand its semiconductor packaging and testing plant in Canada.
IBM's 800 acre base located in Bromont, Quebec, Canada, approximately 50 miles east of Montreal, focuses on advanced semiconductor components and is the largest of its kind in North America, as well as the location of Canada's first general-purpose quantum computer.
Packaging is the technical process of converting chips into microelectronic components and is an important component of the supply chain, requiring skilled labor. The semiconductor packaging capacity in Europe is very limited, with the majority located at the Bromont factory with 1000 employees.
Jamie Thomas, general manager of IBM Technology Lifecycle Services, said in an interview: "Even if we produce processors in factories in the United States or Canada, we must send them back to Taiwan, China, China for packaging. What we really need is a complete onshore supply chain."
Thomas confirmed that IBM's $1 billion Bromont growth plan will be launched from now until 2029. After months of negotiations with the Canadian government, IBM announced on April 26th the initial phase of creating 280 technical jobs. The first phase is an investment worth CAD 227 million, which includes IBM's partner MiQro Innovation Collaboration Center, which will expand its existing Quebec factory and establish a research and development laboratory.
Thomas said that this statement is "a crucial part of supporting our development.". According to the statement, the governments of Canada and Quebec will provide a total of approximately $100 million in funding for the first phase.
Canadian Prime Minister Trudeau said at a press conference, "It is important for Canadians to be at the center of developing these technologies, but it is also important for the world, especially for our allies."
It is reported that Canada is a "wafer free" G7 country - it has technology, but does not have large-scale chip factories. Industry insiders in the chip manufacturing industry are eager to see the Canadian government implement a broad strategy and provide substantial support, similar to providing billions of dollars in factory construction and operation subsidies to the electric vehicle battery industry.
Canadian Industry Minister Francois Philippe Champagne said in an interview that the Canadian government will focus on incentive measures for the chip industry. "We may not be trying to replicate what already exists in the United States, but rather to complement each other and see in which strategic areas we can play a role."
Canada's positioning is more focused on improving the resilience of North American supply chains, providing advanced chip capabilities for highly specialized industries such as aerospace and healthcare, rather than supporting large factories.
Benjamin Bergen, Chairman of the Canadian Innovators Council, is not too concerned about the Canadian government's lack of significant investment. He said that investing hundreds of millions of dollars in a foreign multinational corporation only means that the government has not considered more strategically what kind of semiconductor strategy it wants.
Packaging is the technical process of converting chips into microelectronic components and is an important component of the supply chain, requiring skilled labor. The semiconductor packaging capacity in Europe is very limited, with the majority located at the Bromont factory with 1000 employees.
Jamie Thomas, general manager of IBM Technology Lifecycle Services, said in an interview: "Even if we produce processors in factories in the United States or Canada, we must send them back to Taiwan, China, China for packaging. What we really need is a complete onshore supply chain."
Thomas confirmed that IBM's $1 billion Bromont growth plan will be launched from now until 2029. After months of negotiations with the Canadian government, IBM announced on April 26th the initial phase of creating 280 technical jobs. The first phase is an investment worth CAD 227 million, which includes IBM's partner MiQro Innovation Collaboration Center, which will expand its existing Quebec factory and establish a research and development laboratory.
Thomas said that this statement is "a crucial part of supporting our development.". According to the statement, the governments of Canada and Quebec will provide a total of approximately $100 million in funding for the first phase.
Canadian Prime Minister Trudeau said at a press conference, "It is important for Canadians to be at the center of developing these technologies, but it is also important for the world, especially for our allies."
It is reported that Canada is a "wafer free" G7 country - it has technology, but does not have large-scale chip factories. Industry insiders in the chip manufacturing industry are eager to see the Canadian government implement a broad strategy and provide substantial support, similar to providing billions of dollars in factory construction and operation subsidies to the electric vehicle battery industry.
Canadian Industry Minister Francois Philippe Champagne said in an interview that the Canadian government will focus on incentive measures for the chip industry. "We may not be trying to replicate what already exists in the United States, but rather to complement each other and see in which strategic areas we can play a role."
Canada's positioning is more focused on improving the resilience of North American supply chains, providing advanced chip capabilities for highly specialized industries such as aerospace and healthcare, rather than supporting large factories.
Benjamin Bergen, Chairman of the Canadian Innovators Council, is not too concerned about the Canadian government's lack of significant investment. He said that investing hundreds of millions of dollars in a foreign multinational corporation only means that the government has not considered more strategically what kind of semiconductor strategy it wants.