International Business Machines Corp. (IBM) is expected to sign a high-level agreement to expand semiconductor production in Canada.
The deal is reportedly to be signed with the Government of Canada while U.S. President Joe Biden is in Ottawa for an official visit with Prime Minister Justin Trudeau.
IBM currently operates a large facility for testing and packaging semiconductors in Bromont, Quebec.
The memorandum of understanding that will be signed will outline a plan to expand IBM’s microchip operations in Quebec, particularly when it comes to workforce development.
The agreement will also increase Canada’s role in the North American semiconductor supply chain and integrate IBM’s Canadian operations more with its U.S. manufacturing base.
The Government of Canada is seeking to develop a cross-border trade corridor for microchip and semiconductor manufacturing that is based on the automotive corridor that runs between the two countries.
IBM’s stock has declined 5% over the last 12 months to $123.37 U.S. per share.
