The Canadian government will loan C$195 million ($140.78 million) to Xanadu Quantum to help build a plant in Toronto that will manufacture photonic components for quantum computers, the country’s largest government support for the technology.
The funding announced on Friday comes as governments step up efforts to develop quantum computing and secure a share of a technology seen as strategically important.
It also follows a decision by the Trump administration to invest $2 billion in equity stakes across nine quantum-computing companies as the United States seeks to maintain its lead in the sector.
Quantum computers are expected to eventually solve some problems that conventional computers cannot handle efficiently and could speed up research in areas such as drug discovery and materials science.
But the technology remains prone to errors because quantum systems are highly sensitive to disturbances.
The federal loan covers half of as much as C$390 million in government funding Xanadu announced in March.
The company expects Ontario’s provincial government to provide the remaining C$195 million and said it expects to announce an agreement “in the near future.”
Xanadu said the federal loan would help fund the Toronto manufacturing plant, though it did not disclose the terms of the financing.
“Essentially repayments in the future will be based as a percentage of revenue going forward, and it (the loan) is expected to create up to 275 jobs as well,” CEO Christian Weedbrook told Newsmen.
Founded in 2016 by Weedbrook, Xanadu is developing quantum computers that use photonics, a light-based technology also used in fiber-optic internet networks.
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The company’s quantum computer is not yet commercially available. Its system is designed to operate at room temperature, unlike some other quantum computers that require extremely low temperatures to reduce errors.
Xanadu went public on the Nasdaq in March through a merger with a special purpose acquisition company. Its customers include chipmaker AMD and semiconductor manufacturer Tower Semiconductor.
The company currently designs its chips in Canada but relies on foundries in the United States, Asia and Europe to manufacture them.
“Overall, we work with foundries in the U.S., Asia, Europe … we do all our chip designs ourselves in Canada, send them off to these different foundries,” Weedbrook said.
The Toronto plant would give Xanadu more manufacturing capacity for its photonic technology as it works to develop commercially viable quantum computers.
The funding is part of Canada’s wider effort to build its quantum industry and keep more of the technology’s development and manufacturing within the country.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
