Industry and the Kanata North Business Association Welcomes the Privatization and Expansion of the Canadian Photonics Fabrication Centre
Ottawa, ON — [May 4, 2026] — The Kanata North Business Association (KNBA), the advocate for over 800 companies in Kanata North – Canada’s Largest Technology Park – welcomes today’s Government of Canada announcement on the privatization and expansion of the Canadian Photonics Fabrication Centre (CPFC), a critical step towards securing Canada’s semiconductor future and strengthening national technological sovereignty.
This announcement represents a pivotal moment for Canada’s semiconductor ecosystem, enabling the transition of the CPFC into a globally competitive, commercial III-V compound semiconductor foundry. Strongly supported by industry, the move will accelerate domestic manufacturing capacity, reduce reliance on offshore supply chains and position Canada as a global leader in next-generation technologies, including artificial intelligence, photonics and advanced communications. This announcement builds on the inclusion of the CPFC privatization and expansion in the 2026 Federal budget earlier.
The KNBA, supported by Invest Ottawa and key industry leaders, has mobilized to support this initiative including collaborating on a recent study by Doyletech. The study underscored the strength of Ottawa’s semiconductor and optics sector with semiconductor and integrated photonics companies forming the core cluster which generated C$12.65 billion in national output in 2024 and supported more than 48,000 jobs.
Industry-Led Mobilization and Momentum
The announcement follows a sustained, industry-led effort, convened and advanced through the KNBA, to build alignment around the strategic importance of transitioning the CPFC to a commercial model.
Over the past several years, the KNBA worked closely with leading semiconductor and photonics companies to:
- Convene industry leaders and align priorities
- Support the development of a unified business case
- Engage government stakeholders at multiple levels
- Advocate for inclusion in federal policy and budget priorities
This coordinated effort helped build the momentum that led to today’s announcement.
“We take our lead from industry,” added Kelly Daize, Executive Director of the KNBA. “Once the need to transition the CPFC to a commercial model was clearly articulated, we mobilized with industry, convened key stakeholders, supported the development of the business case, and demonstrated that Ottawa has all of the elements that make it the natural home for a globally competitive compound semiconductor foundry.”
From Ground to Chip: A National Advantage
Canada is one of the few countries with the capability to support a fully integrated semiconductor value chain, from critical minerals to advanced chip design and manufacturing.
“Canada has the full stack, from critical minerals to photonics to AI systems,” said Andy Thompson, Site Lead for Canada for Nokia and Chair of the KNBA Board of Directors. “We’re one of the few countries that can go from ground to chip. “Ottawa is among the few global locations with the infrastructure, technical expertise, and skilled workforce to support the CPFC as it transitions to a new commercial entity.”
Ottawa: A Global Hub for Semiconductor Innovation
Ottawa’s leadership in semiconductors and photonics is built on decades of innovation. From early federal investments in communications and satellite technologies to breakthroughs in fiber optics and compound semiconductors, the region has evolved into a globally recognized innovation hub.
Today, Ottawa is at the forefront of next-generation technologies, particularly in AI-driven photonics, where the shift from copper to scalable photonic interconnects is transforming semiconductor performance and system design.
“Ranovus, as the largest and fastest-growing Canadian-owned AI photonic semiconductor company, has been a proud anchor customer of the Canadian Photonics Fabrication Centre (CPFC) for over 14 years,” said Hamid Arabzadeh, Chairman and CEO of Ranovus. “Together, we have co-developed multiple generations of AI-optimized laser technologies and, with support from ISED, built a strong ecosystem of design, fabrication, and advanced packaging partners in the Ottawa–Kanata region. This foundation has helped unlock the potential of this strategic Canadian asset. We welcome the federal government’s step to establish a well-funded, globally competitive foundry that can match the world’s best in scale, innovation, and quality.”
Strengthening Canada’s Global Position
The expansion of the CPFC represents a strategic opportunity for Canada not only to participate in semiconductor markets, but to lead in areas where research, design, and specialized manufacturing define competitiveness.
By anchoring end-to-end innovation and production capability domestically, Canada will:
- Strengthen economic resilience
- Secure critical supply chains
- Capture greater value across the semiconductor lifecycle
- Position itself as a trusted, low-carbon supplier in global markets
“Canada has long been a leader in semiconductor design and research, but access to advanced fabrication like the CPFC is key to turning innovation into commercial success,” said Gord Harling, President and CEO, CMC Microsystems. “Through collaboration with the CPFC to develop accessible process technologies, we can enable cost-effective prototyping, accelerate commercialization, and strengthen Canada’s semiconductor ecosystem.”
About the Kanata North Business Association (KNBA)
The Kanata North Business Association represents over 800 companies located in Kanata North and Canada’s largest technology park. KNBA works to foster collaboration, drive innovation and support the continued growth of Ottawa’s globally recognized technology ecosystem.
The latest economic impact report completed for 2025 shows Kanata North to be the innovation and economic engine for the City of Ottawa, the Province of Ontario and nationally, generating a total economic output of $17.9 billion, driven by over 800 companies providing approximately 63,300 jobs.
Media Contact:
Kanata North Business Association
Hannah Manierka
hannah.manierka@kanatanorthba.ca
(416) 460 0799
Supporting Quotes:
“Inpho is deploying the highest-performance opto-electronic semiconductor chips in the world. By owning the critical bridge between electrons in computation and photons for communication, Inpho solves the speed bottleneck facing the world’s leading hyperscale datacentres as demand for AI explodes. The Canadian Photonics Fabrication Centre (CPFC) is one of three foundries globally, and the technical leader in this space. By taking this step to catalyze investment and expand the CPFC, Canada’s new government is demonstrating the ambition needed to establish market dominance in photonic semiconductor chips.
Inpho applauds this generational project, which will anchor semiconductor supply in Canada, and give the country strategic leverage in the global AI hardware race, all while boosting productivity, growing national GDP, and creating highly skilled jobs for Canadians.”
Joe Costello, Chairman & CEO, Inpho
“Kanata North is the natural home for the next evolution of the CPFC. With world-class design centres in close proximity, we have a unique opportunity to dramatically shorten innovation cycles, moving from concept to fabrication faster and competing more effectively on the global stage. At the same time, it is critical that Canadian-owned firms have the opportunity to invest in and help shape this facility, ensuring it is built, scaled, and operated in Canada for long-term national advantage.”
Terry Matthews, Chairman of Wesley Clover International
“Invest Ottawa is honoured to collaborate with the Government of Canada, KNBA, and the semiconductor companies building, scaling, and leading here every day. This milestone will fuel new investment, expand major employers, and scale the next generation of homegrown Canadian champions. It will further cement Ottawa’s role as a global tech hub and drive billions in future economic impact. The evolution of the CPFC into a commercial facility will harness our global leadership in photonics and advanced semiconductors and unlock significant new opportunity and impact at scale. For example, through our Defence Innovation Hub strategy, we will accelerate semiconductor innovation into real-world deployment across defence and dual-use sectors as an ecosystem, strengthening Canada’s economic sovereignty and national security.”
Sonya Shorey, President and CEO, Invest Ottawa
