Government of Canada invests in Xanadu to build up advanced quantum manufacturing in Canada
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Investment will establish advanced manufacturing capabilities and create high-quality jobs in Canada
TORONTO, Aug. 28, 2026 /CNW/ -- Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, announced a federal investment of $195 million, through the Strategic Response Fund, in Xanadu Quantum Technologies' $893 million project to expand its research and development facility and establish advanced manufacturing capabilities in Canada.
Canada is building the capacity to compete in the industries of the future. This project will create 275 high-quality jobs and add the specialized facilities needed to develop, manufacture and commercialize quantum technologies in Canada. It will also support partnerships with Canadian research institutions and small and medium-sized businesses, helping turn more Canadian ideas into Canadian products and jobs.
Quantum technologies have the potential to transform a number of industries, including cybersecurity and defence, health care, energy and logistics. At a time when the global economy is undergoing profound change, the Government of Canada is investing strategically to harness these technologies to create jobs, protect Canadians and strengthen our industries. Today's investment advances key initiatives under Canada's new Defence Industrial Strategy and National Quantum Strategy by strengthening domestic capacity in technologies that are critical to Canada's future prosperity, security and sovereignty.
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
"Etobicoke–Lakeshore has a long tradition of being a community where you can live and work. This announcement will preserve our local culture while bringing us into the modern age."
– James Maloney, Member of Parliament for Etobicoke–Lakeshore
"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
Quick facts
- This project will develop new capabilities for integrating, packaging, testing and assembling advanced photonic and semiconductor components used in quantum systems. A key focus of the work is qualifying manufacturing processes that are compatible with future fault-tolerant quantum computing--capabilities that do not currently exist at industrial scale.
- The quantum sector in Canada is projected to contribute $17.7 billion to Canada's gross domestic product (GDP) and more than 157,000 jobs by 2045.
- As announced in December 2025, Xanadu is one of four Canadian quantum companies receiving funding of up to $23 million each through the first phase of the Canadian Quantum Champions Program.
- The Strategic Response Fund helps Canadian industries innovate, adapt and compete in a changing global economy. It supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, AI and advanced technologies.
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SOURCE Innovation, Science and Economic Development Canada
Contacts: Leela Polushin, Press Secretary, Office of the Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]
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