Canada Invests in National Semiconductor Network

Canada Invests in National Semiconductor Network

Canada invests will allocate C$120 million ($88.2 million) over five years to establish a national semiconductor network as demands for the government to enhance its struggling chip sector grow stronger. Industry Minister François-Philippe Champagne disclosed the expenditure from the federal Strategic Innovation Fund on Thursday. This funding supports a C$220 million initiative led by the nonprofit research accelerator CMC Microsystems to assist Canadian startups in commercializing new technologies.

Fabric Network to Boost Innovation

Named the Fabrication of Integrated Components for the Internet’s Edge (Fabric) network, the program will subsidize prototype production. It provides participants with more affordable access to tools, software, and training, as first reported by The Logic. Canada invests in Fabric, which offers up to C$10 million in funding for hardware development in semiconductors, superconductors, smart sensors, and photonics.

“Support for Fabric secures Canada invests future in semiconductors and advanced manufacturing,” stated CMC President Gordon Harling, acording to WSJ Print Subscription.

Strategic Investments in Chip Sector

This new investment follows the April announcement of a joint C$187 million investment by IBM. The governments of Canada and Quebec aim to expand IBM Canada’s chip packaging facility in Bromont.

Some celebrate a resurgence in Canada invests chip industry. Others argue Trudeau’s government hasn’t done enough to compete globally. The US Chips Act of 2022 allocated $39 billion in grants. Additionally, it provided $75 billion in loans and guarantees to promote American semiconductor production.

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Competing on the Global Stage

Trudeau’s government has, however, pledged billions in subsidies to match the incentives in the US Inflation Reduction Act, aiming to attract global automakers to manufacture electric-vehicle batteries in Canada. Canada invests heavily in the EV sector to stay competitive in the global market.

Paul Slaby, director of Canada invests Semiconductor Council, recently criticized Canada’s lack of an industrial strategy for the chip sector. Speaking at the International Economic Forum of the Americas conference in Montreal in June, he addressed the issue. Slaby mentioned that the Trudeau administration only recently began forming a dedicated team for the industry. He suggested Canada focus on dominating a specific segment of the supply chain, similar to the Netherlands’ success with ASML Holding NV.

Since the Chips Act was announced, over 50 semiconductor projects have been initiated in the US. Slaby proposed that the competition between the US and China presents an opportunity to align with American interests. “We need a semiconductor pact with the US,” he stated. Canada invests heavily in semiconductor technology to stay competitive in the global market.

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