TORONTO — The federal government’s plan to spin out a publicly owned semiconductor plant has already attracted interest from companies in Europe and Asia that are keen to invest, according to Industry Minister Mélanie Joly.

Earlier this week, Joly announced that the National Research Council will convert its Canadian Photonics Fabrication Centre (CPFC) into a commercial entity that can take on private-sector capital.

Following the spinout, the facility “needs to be Canadian majority-owned,” Joly told reporters on Thursday on the sidelines of the Public Policy Forum’s Canada Growth Summit in Toronto. The federal government also plans to retain a stake, she said, describing it as “a maple syrup share, because we want to be able to have a say in it.”

The Ottawa-based CPFC is one of only three independent facilities in the world that manufactures compound semiconductors, light-based components that help move information around data centres. Tech firms and policymakers in the capital have long pushed for the facility to be privatized, arguing it could become a production hub or “foundry” for the vital components. Taiwan Semiconductor Manufacturing (TSMC) has become one of the world’s most valuable companies by doing the same thing for silicon-based chips. 

The CPFC has previously attracted interest from U.S. private equity firms, and Canadian technology executives have called for the federal government to ensure it remains in Canadian hands once it is spun out. Joly said Thursday that it will. The CPFC is “fundamental to our future capacity to really build semiconductors in Canada,” she said. “This bold move will attract more investments that are needed to scale even more the production.”

The Liberal government previously tried to align Canada’s semiconductor sector with the U.S., hoping to capitalize on the reshoring of supply chains prompted by the Biden administration’s US$52.8-billion U.S. CHIPS Act. In March 2025, U.S. President Donald Trump tore up that program, and Washington has since pushed chipmakers to focus on investments and partnerships inside the U.S. The Trump administration has also tried to control chip exports, and signalled it could impose tariffs on semiconductor imports.

Those moves could limit the U.S. demand for the components the CPFC produces, or deter U.S. firms from using the facility. Joly said she’s not worried about that. “We think that we can be closer to Europe and closer to Asia,” she said, adding that firms from both continents have told her they’re “very interested” in investing in the facility. “That’s how we will be able to build the middle-power alliance,” she added.