Canada may not be synonymous with semiconductors, but that could be about to change. As the global semiconductor race heats up, Canada is positioning itself to play a key role in the supply chain, leveraging its rich history in tech, natural resources, and proximity to the United States. However, experts warn that to truly unlock its potential, the country will need a robust and targeted industrial policy.
The semiconductor sector in Canada has seen a surge of investment in recent years, with key players looking to expand their presence in the country. Companies like IBM already have an established footprint, with its advanced packaging group based in Quebec, and institutions like MiQro Innovation Collaborative Centre (C2MI) in Quebec offering cutting-edge research and development. Despite these strides, the country has yet to fully capitalise on its potential, primarily due to a lack of comprehensive, forward-thinking industrial policy.
Dick Thurston, chair of Hudson Valley FastFab, highlighted Canada’s long-standing role in the semiconductor sector in this EETimes article, pointing out that the country has a history in semiconductors dating back to the 1960s. He believes Canada has the “exceptional DNA” needed to thrive in the sector, emphasising its strengths in diplomacy, development, and its wealth of critical minerals. Canada’s natural resources, particularly critical minerals essential to chip manufacturing, could prove invaluable as the global push for semiconductor self-sufficiency intensifies. “Canada has a tremendous base for future growth in the semiconductor ecosystem and supply chain,” said Thurston.
However, Jim Bark, a partner at DNA Global, insists that Canada cannot rely solely on its natural advantages. To truly compete on the world stage, the government must take the lead, just as other semiconductor-producing nations have done. Bark pointed to the U.S.’s CHIPS Act as an example of what is possible when government policy actively supports semiconductor growth. He warns, however, that while the U.S. is attempting to handle the semiconductor supply chain alone, this strategy could backfire. “When you try to do the whole thing yourself, you’re bound to fail,” Bark noted, adding that Canada could play a pivotal role as a partner to the U.S. in this endeavour.
Both experts agree that Canada’s semiconductor strategy should be focused and long-term, with investments in manufacturing capabilities, workforce development, and infrastructure. Thurston suggests that Canada should start with a 200mm fab and build from there, leveraging its strengths in quantum and photonics technology to create a diverse and competitive semiconductor ecosystem.
Semiconductors, Bark argues, should be viewed as a foundational industry in Canada, much like food and energy. “It’s going to be embedded in everything,” he says. “Every other sector, including automotive, is derivative of the three.” For Canada, positioning itself as a leader in semiconductor production could not only strengthen its economic future but also help to secure global supply chains at a time of growing geopolitical tensions and trade uncertainties.
While Canada has made strides, it is clear that without a clear industrial policy, the country risks missing the semiconductor revolution that is poised to define the next era of global tech. For Canada to be seen as a serious contender in the global semiconductor industry, its policymakers must act now to implement the focused, long-term strategy needed to drive this vital sector forward.
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