Canada’s Xanadu to build quantum photonics fab with government funding

Xanadu, the Nasdaq-listed developer of photonic quantum computers, is to receive CAD$195 million from the Canadian government that will underpin a new fabrication facility to make the key components required for future products.

Known as “Inception”, the 158,000-square-foot site in Toronto is envisaged as an advanced facility with a global outlook hosting photonic chip integration, packaging, wafer-scale test and measurement, and quantum module assembly operations.

“The Toronto site is being transformed into one of the world’s most sophisticated photonics facilities,” Xanadu announced. “Inception is expected to feature state-of-the-art cleanrooms and equipment tailored for high-precision quantum hardware.”

According to a Canadian Broadcasting Corporation (CBC) report, the site was previously home to a Campbell’s Soup factory.

Heterogeneous integration

Key technical capabilities at the new fab are expected to include round-the-clock test and measurement facilities and some “first-of-a-kind” heterogeneous integration processes needed to integrate a diversity of photonic components onto a single chip whose production can be ramped to volume scale.

The state support represents a key portion of a wider finance package expected to total as much as CAD$390 million that has been earmarked “Project Optimism”.

Xanadu’s founder-CEO Christian Weedbrook commented: “The launch of Inception is a defining strategic milestone for Xanadu and the broader quantum industry.

“We believe that this investment ensures that Xanadu remains at the forefront of the field, providing the infrastructure necessary to transition quantum technology from the lab to commercial-scale data centers.”

In a follow-up post on LinkedIn, he added: “Inception is where the next generation of quantum infrastructure will be built. Proud moment for Xanadu!” Meanwhile the firm’s latest technology roadmap anticipates utility-scale quantum computing via an operational quantum data center by the end of the decade.

In a broader announcement confirming the state-level support, Canada’s Minister of Industry Mélanie Joly said: “Quantum technology represents a tremendous opportunity to create good jobs, strengthen our economic sovereignty, and grow world-leading industries here at home.

“By investing in advanced manufacturing and innovation in Canada, we are building a more resilient economy, developing Canadian talent, and ensuring we remain competitive in a rapidly changing world.”

Thorlabs connection

Founded by Weedbrook in 2016, Xanadu went on to raise $100 million in a series B round of venture funding in May 2021, with the CEO noting at the time that the startup would be able to leverage existing photonics foundries and off-the-shelf optical components to form quantum computers with a million qubits.

In January this year Xanadu and Thorlabs announced that they were collaborating to develop customized solutions addressing optical loss and large-volume manufacturability of key fiber-based components needed in photonic quantum computers, in particular those addressing phase and polarization stability issues.

Since then, Xanadu has listed on the Nasdaq via a Private Investment in Public Equity (PIPE) funding arrangement with “blank check” financier Crane Harbor that was said to have raised USD$302 million in gross proceeds.

Last month Xanadu posted an operating loss of USD$30 million on sales revenues of USD$1.5 million for the three months ending June 30.