IBM, the government of Canada and the Quebec government have signed an agreement to expand and strengthen the country’s semiconductor industry to develop the assembly, testing and packaging capabilities for chip modules.
The packaging and modules will be used across a range of applications including telecommunications, high performance computing, automotive, aerospace and defense, computer networks and generative artificial intelligence. The value of the agreement is $136.9 million.
“Today’s announcement is a massive win for Canada and our dynamic tech sector,” said Justin Trudeau, Prime Minister of Canada. “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.”
Under the deal, IBM will conduct R&D to develop methods of scalable manufacturing and other advanced assembly processes to support the packaging of different chips technologies. The agreement will also allow for collaborations with small and medium-sized Canadian-based vendors to develop a chip ecosystem.
Why it matters
Regional manufacturing is growing fast globally. Japan, the U.S., Europe and Canada have all set aside funding to aid in the development of the domestic semiconductor industry.
This is due to the current aggregation of semiconductor manufacturing and the flaws that were revealed during the COVID-19 pandemic outbreak. While a revenue generating opportunity is one reason for this growth, the hope is that when a future geopolitical event or other global issue happens, the supply chain will be more resilient.
The goal of this agreement is to expand Canada’s role in the North American semiconductor supply chain and improve the country’s capabilities in advanced packaging, IBM said.
