Xanadu Quantum Technologies, a Canadian photonic quantum computing company, announced it has entered negotiations with the Government of Canada and the Government of Ontario regarding potential support of up to C$390 million to advance quantum manufacturing capabilities in the country.
The proposed funding would support Project OPTIMISM, an initiative aimed at establishing advanced semiconductor and photonic manufacturing infrastructure for the quantum technology supply chain in Canada. The initiative is intended to accelerate Xanadu’s progress toward utility-scale quantum computing and enable future quantum data center infrastructure.
Under the plan, Xanadu aims to develop domestic capabilities for heterogeneous integration, photonic integrated circuit packaging, wafer-level semiconductor testing and measurement, and quantum module assembly. The company said building these capabilities locally could help close gaps in the emerging quantum technology supply chain while supporting the development of next-generation photonic quantum systems.
The initiative is expected to advance Canada and Ontario’s role in quantum computing, photonics, and semiconductor innovation. Beyond quantum computing, the infrastructure developed through the project could support other advanced technologies, including telecommunications, AI hardware, sensing technologies, and other semiconductor-driven applications.
The proposed government support remains subject to due diligence and the execution of final agreements.
The announcement comes as Xanadu is pursuing a public listing through a business combination with special purpose acquisition company Crane Harbor Acquisition Corp. The combined entity, expected to be named Xanadu Quantum Technologies Limited, is projected to receive approximately $500 million in gross proceeds from the transaction, including funds from Crane Harbor’s trust account and a committed private investment in public equity.
Founded in 2016, Xanadu develops photonic quantum hardware and software and leads the development of PennyLane, an open-source quantum computing software library.
KEY QUOTE:
“Project OPTIMISM reflects a bold vision for building the advanced manufacturing capabilities required to support the next generation of quantum technologies. We believe this investment, upon finalization, will unlock a major milestone for Xanadu and for Canada’s quantum ambitions. With the proceeds expected from our pending transaction alongside the government’s support, we will be well-positioned to fund the infrastructure required for large-scale quantum computing. We are grateful for the opportunity to explore working with the Government of Canada and the Government of Ontario as we continue discussions toward advancing this initiative and strengthening Canada’s leadership in quantum innovation.”
Christian Weedbrook, Founder And Chief Executive Officer, Xanadu Quantum Technologies
