US tech giant IBM signed an agreement to invest approximately $1 billion ($730 million) to expand its semiconductor packaging and testing plant in Bromont, Quebec.

The investment is expected to be made over a period of five years through 2029 and will focus on advanced semiconductor components.

Valued at $187 million, the first phase of the plan will be used to expand the existing Quebec plant and to construct a new research and development lab. The Canadian and Quebec governments will reportedly provide a combined incentive package of about $100 million for this first phase.