US and Canada Plan Joint Chip Production

(Patria) - The United States and Canada have said they will work together to create a bilateral semiconductor manufacturing corridor, as International Business Machines has signaled its intention to expand in Canada, Reuters reports.

The news came as U.S. President Joe Biden, who is visiting Canada, issued a joint pledge with Canadian Prime Minister Justin Trudeau to jointly combat authoritarian regimes, partly by reducing their reliance on other countries for critical minerals and semiconductors.

The Canadian government will spend C$250 million ($181.94 million) on its domestic semiconductor industry to encourage research and development and manufacturing, the Prime Minister's office said.

In a joint statement, the two leaders said IBM would provide "a significant investment in the development of new and expanded packaging and testing capabilities at its Bromont, Quebec facility as part of a Memorandum of Understanding."

The countries did not disclose the amount of IBM's investment in Canada. IBM maintains semiconductor research and manufacturing in New York State. Last year, the company said it planned to invest $20 billion in the Hudson Valley region of New York, once a manufacturing powerhouse, over the next decade for the production and development of semiconductors, mainframe technology, artificial intelligence, and quantum computing.