IBM plans $730m expansion of Canadian chip operation
IBM is preparing to invest heavily in its 800-acre semiconductor packaging and testing plant in Bromont, Quebec.
The computer firm will allocate USD 730 million to the site over the next five years as part of its on-shoring strategy to bring operations closer to home.
IBM made its announcement in cooperation with the government of Canada and the government of Quebec. They valued the first stage of the investment at approximately USD 137 million. This will comprise fresh expansion of IBM's packaging capabilities, and more resources for R&D to develop methods for scalable manufacturing and other advanced assembly processes.
Official statements accompanying the news make it clear that this announcement is a big deal for Canada as well as IBM. Canada doesn't have any chip foundries, and the Bromont plant is its largest chip assembly and testing facility, having operated in the region for 52 years.
“Today’s announcement is a massive win for Canada and our dynamic tech sector. 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,” said Justin Trudeau, Prime Minister of Canada.
“IBM has long been a leader in semiconductor research and development, pioneering breakthroughs to meet tomorrow’s challenges. With the demand for compute surging in the age of AI, advanced packaging and chiplet technology is becoming critical for the acceleration of AI workloads,” said Darío Gil, IBM Senior Vice President and Director of Research. “As one of the largest chip assembly and testing facilities in North America, IBM’s Bromont facility will play a central role in this future. We are proud to be working with the governments of Canada and Quebec toward those goals and to build a stronger and more balanced semiconductor ecosystem in North America and beyond.”
