Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced that work will begin to spin off the National Research Council of Canada (NRC)'s Canadian Photonics Fabrication Centre (CPFC) into a commercial entity with firmly Canadian foundations and with Canadian industrial development at its core. Photonics technology is a central part of the Government of Canada's plan to build up our country's advanced manufacturing sectors and sovereign capabilities, including in auto, defence, aerospace and AI.
As the global demand for AI technologies increases, photonic devices will play an increasingly important role in addressing challenges associated with performance, power and heat in large data centres and AI compute facilities. By strengthening domestic photonics capabilities, Canada can enhance its economic resilience, safeguard its technological sovereignty and secure a leadership role in the compound semiconductor industry.
Budget 2025 indicated that the Government of Canada would explore options to seek private capital to scale the operations of the CPFC to serve as a platform for Canadian innovation and new photonic applications.
As North America's only end-to-end pure play compound semiconductor facility, the CPFC plays a critical role in Canada's innovation ecosystem. Over the past 2 decades, the CPFC has evolved into a key industrial partner for Canada's growing photonics ecosystem. Through design, refinement, fabrication and testing of compound semiconductor wafers, the CPFC works with companies across the photonics industry to bring their products to market.
The CPFC will continue to be anchored in Canada and create high-quality jobs for Canadians. The future spin-off will attract private-sector capital to scale the CPFC's operations, expand the Canadian supply chain of photonic manufacturing capabilities and provide more effective and timely services to fast-growing, innovative Canadian small and medium-sized enterprises at the forefront of AI compute and quantum technologies. The Government of Canada is taking action to strengthen Canada's competitiveness and leadership in next-generation technologies that will drive growth, enhance resilience and bolster national security.
