Canada invests $195 million in Xanadu quantum manufacturing expansion

The federal government is investing $195 million in Xanadu Quantum Technologies to expand its research and development facility and establish advanced quantum manufacturing capabilities in Canada. The funding, delivered through the Strategic Response Fund, supports part of Xanadu’s $893‑million project in Toronto.

The project will create 275 jobs and add specialized facilities needed to develop, manufacture and commercialize quantum technologies. It will also support partnerships with Canadian research institutions and small and medium‑sized businesses.

“Strategic investments like this one help transform Canadian breakthroughs into globally competitive businesses,” said Evan Solomon, Minister of Artificial Intelligence and Digital Innovation.

Quantum technologies have applications in cybersecurity, defence, health care, energy and logistics. The investment aligns with Canada’s Defence Industrial Strategy and National Quantum Strategy by strengthening domestic capacity in critical technologies.

“Building Canada strong means investing in the industries that will strengthen our economy today and into the future,” said Mélanie Joly, Minister of Industry.

Canada’s investment will support new capabilities for integrating, packaging, testing and assembling advanced photonic and semiconductor components used in quantum systems. The quantum sector is projected to contribute $17.7 billion to Canada’s GDP and more than 157,000 jobs by 2045.

Xanadu said the investment will help establish the infrastructure needed for utility‑scale quantum computing.
“This agreement is a major milestone for Xanadu and for Canada’s ambition to lead in quantum technology,” said CEO Christian Weedbrook.

Xanadu previously received up to $23 million through the Canadian Quantum Champions Program, and the Strategic Response Fund supports large‑scale projects that strengthen supply chains and protect jobs in key sectors.