TORONTO — Canada is making one of its biggest bets yet on quantum technology, with the federal government committing $195 million to a major advanced manufacturing project led by Toronto-based Xanadu Quantum Technologies.

The investment will support Xanadu’s $893 million Project OPTIMISM, which aims to expand the company’s research and development operations and establish domestic manufacturing capabilities for advanced quantum technologies.

The project is expected to create 275 high-quality jobs while building specialized capabilities for integrating, packaging, testing and assembling photonic and semiconductor components used in quantum systems.

Xanadu plans to establish a 158,000-square-foot advanced photonics facility in Toronto, called “Inception,” designed to manufacture and assemble components for future quantum computing systems.

The federal government says the investment will strengthen Canada's quantum technology supply chain and help transform Canadian research into commercial products. Quantum technologies could have applications across cybersecurity, defence, healthcare, energy and logistics.

The project represents a major step toward building a domestic Canadian quantum manufacturing ecosystem rather than relying heavily on overseas production for critical components.