Xanadu Quantum Technologies has secured a C$195 million grant from the Government of Canada to establish domestic manufacturing capabilities for photonic quantum computers.
The funding, provided through Innovation, Science and Economic Development Canada, represents the largest single investment in quantum manufacturing in Canadian history, according to the company. It completes the federal portion of Project OPTIMISM, which has a total potential budget of C$390 million. The initiative was first announced on March 11, 2026.
The facilities will focus on advanced manufacturing processes including heterogeneous integration of photonic chips, photonic integrated circuit packaging, semiconductor wafer-level testing and measurement, and quantum module assembly. Xanadu stated these capabilities could extend beyond quantum computing to applications in telecommunications, artificial intelligence hardware, and sensing technologies.
Founded in 2016, Xanadu develops photonic quantum computing hardware and software, including its open-source quantum computing platform PennyLane. The company became the first pure-play photonic quantum computing firm to list on public markets, trading under the ticker XNDU.
Dr. Christian Weedbrook, Founder and Chief Executive Officer, said the agreement "marks an important milestone for Xanadu and Canada's ambition to lead in quantum technology and advanced manufacturing." He added that scaling utility-grade quantum computers will require "a new generation of highly specialized manufacturing capabilities."
The Honourable Mélanie Joly, Canada's Minister of Industry, said the investment aims to create jobs, strengthen economic sovereignty, and develop strategic industries. The definitive agreement was signed on Wednesday, with the C$195 million allocation completing the federal commitment to Project OPTIMISM.
XNDU shares were indicated 1.25% higher at C$10.30 in afternoon trading, with a prior session decline of 0.77%.
The project's total funding envelope of C$390 million includes the federal commitment of C$195 million, with additional contributions expected from provincial partners and private sector stakeholders.
