Canada to Retain Majority Stake in Photonics Hub Amid Private Investment Push The Canadian government plans to sell a portion of the Canadian Photonics Fabrication Centre while maintaining majority ownership, aiming to boost semiconductor and AI innovation through private investment. The Canadian government has announced plans to retain a stake in the Canadian Photonics Fabrication Centre (CPFC) while pursuing a partial sale to private investors. Industry Minister Mélanie Joly emphasized that the facility will remain majority Canadian-owned, ensuring continued domestic control over this critical semiconductor hub. The National Research Council of Canada (NRC) is leading the initiative to spin off the CPFC, aiming to attract foreign direct investment from trusted partners and expand its role in semiconductor production and AI technology development. The CPFC provides photonic semiconductor manufacturers with advanced research and design capabilities, allowing them to test products without building their own facilities.Unlike traditional silicon-based semiconductors, photonic semiconductors use photons—light particles—to process data, offering advantages in performance, power efficiency, and heat management, particularly for AI and large data centers. The NRC highlighted the growing importance of photonics in addressing challenges in AI infrastructure, noting that global demand for these technologies is rising. Amr S. Helmy, a professor at the University of Toronto, praised the spin-off’s potential to enhance Canada’s chip manufacturing capabilities but cautioned that success depends on effective execution.He noted that government-run facilities often underutilize their potential, and private investment could unlock greater efficiency. Paul Slaby, managing director of Canada’s Semiconductor Council, underscored the CPFC’s global significance, stating it is one of only three such facilities worldwide. The Kanata North Business Association welcomed the decision, arguing it would reduce dependence on offshore supply chains and bolster domestic innovation.However, venture capitalist Matt Roberts expressed skepticism, pointing out the CPFC’s historical role in supporting startups like GaN Systems, which might not have thrived without its resources. He warned that privatization could limit access for smaller firms.Meanwhile, Hamid Arabzadeh, CEO of Ranovus—a company specializing in photonic AI data center technology—revealed plans to submit an offer for the CPFC, either as an investor or owner. The move reflects broader industry interest in securing a stake in Canada’s semiconductor ecosystem, which is increasingly seen as a strategic asset in the global tech race