Strategic Response Fund – IBM and C2MI advanced semiconductor packaging project public statement

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a Climate, Nature and Economy Lens (CNEL) assessment was completed for an IBM Canada Limited (IBM) and MiQro Innovation Collaborative Centre (C2MI) project. The Government of Canada will provide a contribution of up to $210 million to support the project through the Strategic Response Fund, formerly the Strategic Innovation Fund.

A partnership between IBM and C2MI, the $662 million project will expand existing facilities in Bromont, Quebec, to acquire and operationalize advanced semiconductor packaging and post-processing capabilities. These upgrades will help secure Canada's participation in the North American semiconductor supply chain, accelerate commercialization of emerging technologies and strengthen domestic resiliency in sectors such as artificial intelligence (AI), photonics, automotive and advanced manufacturing.

The CNEL assessment results indicated that the project will have limited and manageable environmental impacts, alongside notable potential benefits. While construction and expanded semiconductor operations are expected to generate some greenhouse gas emissions, these will be mitigated through Quebec's low-emission electricity grid and IBM's environmental management systems. Additional environmental effects—such as noise, waste and water use—are expected to be localized and controlled through established mitigation measures. No significant impacts on biodiversity or climate risk exposure are anticipated, as the site is located on existing industrial land and outside major hazard zones. Importantly, the technologies produced may indirectly support emissions reductions and climate resilience across multiple sectors.

Economically, the project is expected to deliver strong benefits, including high-skilled job creation, strengthened supply chains and enhanced innovation in advanced manufacturing. It will support Canada's competitiveness in the semiconductor sector and contribute to long-term economic resilience and technological sovereignty. Broader considerations indicate that there are no direct impacts on Indigenous rights and that there is alignment with federal sustainability goals and a generally positive public perception, particularly if the project is supported by transparent environmental reporting. Overall, the project will strengthen Canada's advanced manufacturing base for semiconductors and drive the development of Canada's AI ecosystem.