The Government of Canada is investing $195 million in Xanadu Quantum Technologies through the Strategic Response Fund to support an $893 million project that will expand the company’s research and development facility and establish advanced quantum manufacturing capabilities in Canada.
The project is expected to create 275 high-quality jobs and establish specialized facilities for developing, manufacturing and commercializing quantum technologies domestically. It will also support partnerships with Canadian research institutions and small and medium-sized businesses.
Xanadu’s project will develop manufacturing capabilities for integrating, packaging, testing and assembling advanced photonic and semiconductor components used in quantum systems.
A key focus is developing manufacturing processes compatible with future fault-tolerant quantum computing, capabilities that the government said do not currently exist at industrial scale.
The investment supports Canada’s National Quantum Strategy and Defence Industrial Strategy, with the government highlighting quantum technology’s potential applications across cybersecurity, defense, healthcare, energy and logistics.
Xanadu CEO Christian Weedbrook said the funding will support infrastructure required for utility-scale quantum computers while strengthening Canada’s domestic quantum supply chain and creating a foundation for future quantum data center deployments.
Canada’s quantum sector is projected to contribute $17.7 billion to GDP and more than 157,000 jobs by 2045.
Xanadu was also previously selected as one of four Canadian quantum companies eligible to receive up to $23 million each through the first phase of the Canadian Quantum Champions Program.
KEY QUOTES:
“Building Canada strong means investing in the industries that will strengthen our economy today and into the future. Quantum technology represents a tremendous opportunity to create good jobs, strengthen our economic sovereignty and grow world-leading industries here at home. By investing in advanced manufacturing and innovation in Canada, we are building a more resilient economy, developing Canadian talent and ensuring we remain competitive in a rapidly changing world.”
The Honourable Mélanie Joly, Minister of Industry and Minister Responsible for Canada Economic Development for Quebec Regions
“Canada is home to some of the world’s leading quantum researchers, innovators and companies. Strategic investments like this one help transform Canadian breakthroughs into globally competitive businesses, strengthen our quantum ecosystem and create high-value jobs here at home. Quantum technologies will be one of the foundational technologies of the 21st century. By supporting advanced manufacturing and commercialization in Canada, we are helping ensure that Canada remains a global leader in quantum innovation and that more of the economic benefits of that leadership are created here at home.”
The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister Responsible for the Federal Economic Development Agency for Southern Ontario
“This agreement is a major milestone for Xanadu and for Canada’s ambition to lead in quantum technology and advanced manufacturing. We believe building utility-scale quantum computers will require a new generation of highly specialized manufacturing capabilities. With the Government of Canada’s commitment through the Strategic Response Fund, we can move forward with establishing that infrastructure here at home, strengthening Canada’s quantum supply chain and creating a foundation for future quantum data centre deployment. We are grateful for the Government of Canada’s confidence in Xanadu, and we look forward to continuing our discussions with the Government of Ontario as we work to realize the full vision for Project OPTIMISM.”
Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu
