What's Going On With IBM Stock Amid Expansion In Canada?

Author: Nabaparna Bhattacharya | April 26, 2024 12:29pm

International Business Machines Corporation (NYSE:IBM) shares are trading lower on Friday.

The software giant announced agreements with the Government of Canada and the Government of Quebec to develop further the assembly, testing, and packaging (ATP) capabilities for semiconductor modules. 

“Today’s announcement is a massive win for Canada and our dynamic tech sector,” said Justin Trudeau, Prime Minister of Canada.

The modules will be used across various applications, including telecommunications, high-performance computing, automotive, aerospace & defense, computer networks, and generative AI, at IBM Canada’s plant in Bromont, Quebec.

The agreements reflect a combined investment valued at approximately C$187 million.

“It will create high-paying jobs, invest in innovation, strengthen supply chains, and help make sure the most advanced technologies are Canadian-made. Semiconductors power the world, and we’re putting Canada at the forefront of that opportunity,” Trudeau added. 

IBM is set to conduct research and development aimed at enhancing packaging capabilities and devising scalable manufacturing methods, as well as other advanced assembly processes. 

These efforts will bolster Canada’s position in the North American semiconductor supply chain and foster the expansion and solidification of the country’s expertise in advanced packaging.

“Advanced packaging is a crucial component of the semiconductor industry, and IBM Canada’s Bromont plant has led the world in this process for decades,” said Deb Pimentel, president of IBM Canada. 

IBM recently reported first-quarter financial results where revenue increased 1% year-over-year to $14.46 billion, which missed the consensus estimate of $14.55 billion, according to Benzinga Pro.

Price Action: IBM shares are trading lower by 1.44% to $166.51 at last check Friday.

Photo via Shutterstock

Posted In: IBM