Ranovus Eyes Canada’s Prized Chip Foundry Acquisition
Ranovus, a semiconductor company, is launching a venture investment arm to strengthen Canada’s chip industry by investing in its own supply chains. CEO Hamid Arabzadeh has set his sights on acquiring the Canadian Photonics Fabrication Centre (CPFC), a prized chip foundry currently under the National Research Council.
A strategic acquisition
The CPFC, located in eastern Ottawa, is one of only three facilities globally that produces compound semiconductors for external customers. These chips use lasers and fiber optics to transmit data faster and more efficiently than traditional semiconductors. Ranovus, which manufactures chips with these components, sees the CPFC as a key asset to bolster its position in the market.
Arabzadeh revealed that Ranovus has already invested in the CPFC to enhance its capabilities and has purchased over 100 million lasers produced at the facility. With the Canadian government planning to privatize the CPFC, Arabzadeh believes Ranovus is well-positioned to take over its management.
Preserving Canadian ownership
The acquisition of the CPFC is a significant undertaking, but Arabzadeh is confident in Ranovus’s ability to maintain Canadian ownership. The company, valued at $1.5 billion to $1.75 billion, aims to raise hundreds of millions of dollars for various projects, including the CPFC acquisition.
Ranovus’s interest in the CPFC is part of a broader strategy to support its suppliers and support innovation in the Canadian semiconductor industry. Arabzadeh highlights the recent acquisitions of Canadian startups by foreign companies, such as Untether AI by AMD and Hyperlume by Credo, as examples of the need to keep Canadian talent and expertise within the country.
A vision for Canadian semiconductor growth
Through its venture investment arm, Ranovus aims to provide funding and guidance to Canadian startups, with a focus on helping suppliers grow and become more resilient. Arabzadeh envisions a future where Ranovus executives, many with Silicon Valley connections and entrepreneurial experience, serve on the boards of these startups, creating a collaborative environment.
Encouraging Entrepreneurial Talent
Arabzadeh aims to attract former founders back into entrepreneurship by increasing venture capital availability. He wants to motivate serial entrepreneurs, especially those in multinational companies, to pursue new ventures. This includes ex-Nortel employees now at Ciena, Ericsson, and Nokia, encouraging them to contribute to Canada’s semiconductor growth.
