Canada Establishes Quantum Research Program to Compete with U.S. Initiative

The Canadian federal government has announced the launch of its own quantum research program, the Canadian Quantum Champions Program (CQCP), in a strategic move to bolster its domestic quantum industry. This initiative is a direct response to a U.S. military-backed program that has been courting Canadian firms, particularly those involved in cutting-edge quantum technologies.

The CQCP was unveiled on October 23, 2023, at the Toronto offices of quantum firm Xanadu, and aims to support four Canadian companies—Xanadu, Nord Quantique from Sherbrooke, Photonic based in Coquitlam, and Anyon Systems from Montréal. Each company can receive up to $23 million CAD in funding to advance the development of “scalable and useful” quantum computers.

According to Evan Solomon, Minister of Innovation, Science and Economic Development Canada (ISED), “By strengthening our quantum ecosystem, we are building long-term economic resilience while ensuring Canada’s leadership in science and technology benefits all Canadians.” This funding comes from Canada’s recent commitment of $334.3 million CAD to support the quantum industry, as outlined in the federal budget released in November 2022. Over the next five years, ISED and other federal agencies are projected to allocate $223.1 million CAD for quantum research and $111.2 million CAD for initiatives aimed at anchoring the Canadian quantum industry domestically.

The announcement of the CQCP follows notable advancements by three Canadian firms—Xanadu, Nord Quantique, and Photonic—which have progressed to the second round of the U.S. Quantum Benchmarking Initiative (QBI) run by the Defence Advanced Research Projects Agency (DARPA). These companies stand to gain up to $316 million USD (approximately $445 million CAD) in funding if they successfully develop a functional, fault-tolerant quantum computer.

The CQCP aims to ensure that participating companies meet critical technical milestones before receiving their respective funding. The National Research Council of Canada will oversee the establishment of the Benchmarking Quantum Platforms initiative to assess the technologies of these firms.

Julien Camirand Lemyre, CEO of Nord Quantique, expressed optimism regarding the investment: “This investment is foundational for cultivating a strong quantum computing industry in this country. And it is a clear indication to both foreign and domestic investors that Canada is serious about quantum.” His company specializes in superconducting qubits and has developed a method to create compact and energy-efficient quantum systems. Nord Quantique has already received $1 million USD for its participation in Phase A of the U.S. QBI program.

Anyon Systems, a company described as the “dark horse” of the initiative by its CEO Alireza Najafi-Yazdi, aims to develop a practical quantum computer with thousands of qubits, incorporating built-in error correction. Despite not seeking venture capital, Anyon Systems has benefited from government grants. Najafi-Yazdi emphasized the importance of keeping companies anchored in Canada, stating, “We should take sovereignty very seriously.”

Photonic focuses on developing silicon spin qubits and has raised over $100 million USD in funding, including support from strategic partner Microsoft. CEO Paul Terry welcomed the recognition of quantum technology’s strategic importance, expressing gratitude for being selected to participate in Phase 1 of the CQCP.

Xanadu has adopted a photonic approach to quantum computing, utilizing light particles for computations. The firm has announced plans to go public through a special purpose acquisition company (SPAC) and aims to establish a Canadian quantum data centre by 2029. CEO Christian Weedbrook has previously stated that Xanadu intends to remain in Canada and has advocated for a Canadian counterpart to the U.S. QBI program, highlighting the importance of direct investments over loans for federal support.

In response to the competitive landscape created by the U.S. QBI program, Solomon indicated earlier this year that the Canadian government is committed to implementing policies that help retain quantum firms within the country. He underscored the need to maintain quantum intellectual property (IP) and innovation as a key national priority, particularly in the realms of quantum and cybersecurity technologies, which are increasingly recognized as matters of national security.

As Canada embarks on this significant investment in quantum research, the CQCP represents a strategic effort to ensure the country remains a key player in the evolving landscape of quantum technology.