Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Canada plows another $210M into IBM’s Quebec chip plant

TORONTO — The federal government is providing IBM with another $210 million in financing to help the tech giant upgrade and expand its semiconductor packaging plant in Bromont, Que., The Logic has learned. 

Exclusive

Canada plows another $210M into IBM’s Quebec chip plant

The federal Strategic Innovation Fund is backing the next phase of the tech giant’s upgrades to the facility as it expands capacity for advanced semiconductor packaging

By Murad Hemmadi
IBM’s plant in Bromont, Que. is North America’s largest packager of semiconductors, and the firm is upgrading the facility with financing from the federal and Quebec governments. Photo: Roger Lemoyne for The Logic
May 2, 2025
A A
A Small A Medium A Large
Share

Gift

Share

TORONTO — The federal government is providing IBM with another $210 million in financing to help the tech giant upgrade and expand its semiconductor packaging plant in Bromont, Que., The Logic has learned. 

The firm is one year into a five-year, $1-billion spending plan for the facility. The federal money, which is coming from the Strategic Innovation Fund (SIF), will help IBM pay for equipment upgrades. The company will also work with Centre de Collaboration MiQro Innovation (C2MI), a nearby R&D non-profit, to develop new hardware manufacturing technologies.  

Talking Points

  • The federal Strategic Innovation Fund has awarded IBM another $210 million to help pay for the expansion of the tech giant’s semiconductor packaging plant in Bromont, Que.
  • Ottawa’s financing will help pay for new equipment, according to federal disclosures. The program previously committed $59.9 million to IBM in April 2024.  

IBM’s Bromont campus, opened in 1972, is the largest packager of semiconductors in North America. Packaging is a late stage in the semiconductor manufacturing process, surrounding the silicon bits with pieces that protect them from damage, keep them cool and connect them to other devices. It’s an increasingly important step as chipmakers chasing better performance try to cluster ever-smaller processors closer together.

Ottawa has already backed IBM’s plans for the Bromont plant. In April 2024, then-prime minister Justin Trudeau announced that the SIF would award the firm $59.9 million for the facility expansion as well as its work with C2MI on quantum technologies. At the time, the Quebec government committed $40 million in support for IBM, including a $30-million forgivable loan to buy equipment.

The fresh SIF financing is for a project dubbed “Phase 1.5” that involves “acquisition of advanced packaging capabilities,” according to federal disclosures.

IBM’s Bromont plant is “uniquely positioned to help expand the semiconductor ecosystem across the U.S. and Canada,” said spokesperson Allison Fitton, citing its position as one of North America’s largest testing and assembly facilities. “This new investment builds on critical work started last year to unlock new advancements in cutting-edge chip technology.”

Related Articles

Prime Minister Justin Trudeau, wearing a grey suit and blue tie, speaks at a lectern before a backdrop of onlookers in a large room with fluorescent lights and a white ceiling

Canada puts $59.9M into IBM’s $1B Quebec semiconductor packaging expansion

By Murad Hemmadi
Two gloved hands of an IBM employee working on a piece of optics technology.

IBM says it’s made a major AI data-centre breakthrough

By Murad Hemmadi

The fresh federal funding is a “powerful vote of confidence in the Bromont ecosystem,” C2MI CEO Marie-Josée Turgeon said in a statement, calling it “a major boost in our capacity to support industry and academic partners with state-of-the-art infrastructure and to accelerate the commercialization of cutting-edge technologies.”

The new SIF award “will secure further investment in the Canadian semiconductor industry,” said Hans Parmar, a spokesperson for Innovation, Science and Economic Development Canada, which manages the program. Canada is “committed to investing” in chip R&D, manufacturing and packaging to “grow our domestic industry, create well-paying jobs and be a reliable and trusted member of global supply chains.”

IBM will have to repay some of the funding based on certain conditions, according to federal disclosures. The innovation department declined to disclose those terms, citing commercial confidentiality.

Most of the world’s advanced chips are currently manufactured and packaged in Asia, primarily in Taiwan. The U.S. has tried to reshore semiconductor production in recent years over concerns about China’s designs on the island, and Canada hoped to play a role. IBM’s Bromont plant became a symbol for cross-border co-operation, with the firm aiming to package processors made at the new U.S. fabrication facilities being built with the backing of the Biden administration’s US$52.7-billion CHIPS and Science Act. 

“With all the geopolitics happening these days, there’s a lot of willingness to bring back [the] semiconductor supply chain in North America,” said IBM Bromont site lead Stephen Tremblay, in an interview at last April’s announcement. “We have a very appealing capability to participate.”

A year later, those hopes could be hit by new geopolitical realities. U.S. President Donald Trump has attacked the CHIPS Act, and said he’s planning tariffs on semiconductor imports. Washington has already shown it’s willing to tax sectors that move parts back and forth across the border as part of the assembly process, by targeting Canadian autos. 

Gift the full article

Still, IBM is continuing with its plans to expand the Bromont plant. Engineers at the site recently helped the firm develop a new co-packaged optic component device that can connect chips together faster and more efficiently using light-based signals.  

The SIF has backed other chip projects over the last year, including $8 million for a Teledyne Technologies facility in Bromont, and $120 million for non-profit CMC Microsystems to fund a program that will help researchers commercialize new hardware.

Update: This story has been updated with comment from Innovation, Science and Economic Development Canada.

#C2MI #federal government #IBM #markets #quantum #semiconductors #Strategic Innovation Fund #Tech

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Roger Lemoyne for The Logic

Most Popular This Week

A man wearing a headset microphone sits on a stage. He is speaking and gesturing with his hands. The background is dark blue.
News

Ottawa will invest up to $1.6B in Cohere as firm’s valuation hits $35.7B

By Catherine McIntyre
Prime Minister Mark Carney and the rest of the Liberal front bench stand applauding Finance Minister François-Philippe Champagne in the House of Commons. Champagne is in the middle of the frame, with his hands on a desk lectern.
Special Report

What business wants from the 2026 federal budget

By David Reevely, Joanna Smith, Anita Balakrishnan, Claire Brownell, Chaimae Chouiekh, Murad Hemmadi and Meghan Potkins
The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, August 5, 2022. THE CANADIAN PRESS/Nathan Denette
News

An obscure data standard is the latest open banking holdup—and an unlikely political hot potato

By Claire Brownell
A shot across an expanse of low forest of a rocket launching into blue skies.
News

Canada faces a satellite-launch crunch as SpaceX retires its workhorse rocket

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

U.S. President Donald Trump and Canadian Prime Minister Mark Carney in suits, sitting and talking in the Oval Office with gold decor.
News

Canadians have given up on the old America. They feel fine about it

By David Reevely

Briefing

Canadian investors can’t let foreign capital crowd them out of infrastructure deals, Weston says

By Anita Balakrishnan   |   Oct 30, 2026

Cohere outlines plans to spend $4B on R&D and AI infrastructure in Canada

By Catherine McIntyre   |   Oct 30, 2026

Binance starts recovering frozen assets following US$6.3B hack

By Claire Brownell   |   Oct 30, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Analysis

Why a midterm sweep for the Democrats won’t end Canada’s trade nightmare

By Joanna Smith   |   Oct 29, 2026
News

Bank of Canada raises key interest rate amid soaring energy costs

By Kevin Carmichael   |   Oct 28, 2026
Bank of Canada Governor Tiff Macklem in a suit, speaking and gesturing with his right hand.
News

Ottawa will invest up to $1.6B in Cohere as firm’s valuation hits $35.7B

By Catherine McIntyre   |   Oct 29, 2026
A man wearing a headset microphone sits on a stage. He is speaking and gesturing with his hands. The background is dark blue.
Special Report

What business wants from the 2026 federal budget

By David Reevely, Joanna Smith, Anita Balakrishnan, Claire Brownell, Chaimae Chouiekh, Murad Hemmadi and Meghan Potkins   |   Oct 28, 2026
Prime Minister Mark Carney and the rest of the Liberal front bench stand applauding Finance Minister François-Philippe Champagne in the House of Commons. Champagne is in the middle of the frame, with his hands on a desk lectern.
Commentary

Carmichael: Canada’s Nobel-winning economist thinks Carney is on the right track

By Kevin Carmichael   |   Oct 31, 2026
A man wearing a dark suit jacket, blue button-down shirt and spotted brown-and-blue tie stands in front of a black and blue background, gesturing and speaking into a microphone.
News

The Canadian Forces were warned about safety gaps for 20 years before Wainwright disaster

By David Reevely   |   Oct 30, 2026
A side shot of a row of fully equipped soldiers making a beach landing from zodiac watercraft, rifles in hand.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account