- Semiconductors, often called chips or microchips, are critical to Canada’s national security, economy, and technological interests
- Canada provides semiconductor chip manufacturers and designers preferential market access through 15 free trade agreements to 51 countries, reaching nearly 1.5 billion consumers with a combined GDP of US$49.3 trillion
- Canada’s semiconductor sector includes more than 100 homegrown and multinational companies conducting research and development on microchips
- In July 2024, the Government of Canada invested C$120 million in a C$220-plus million project
Introduction
Semiconductors, often called chips or microchips, are critical to Canada’s national security, economy, and technological interests. The Government of Canada has taken the impact semiconductors have across all sectors of the economy and Canadians’ everyday lives. This is why the government has been open to collaborating with domestic researchers and businesses to strengthen Canada’s position in the industry.
The Canadian semiconductor scene
Canada provides semiconductor chip manufacturers and designers preferential market access through 15 free trade agreements to 51 countries, reaching nearly 1.5 billion consumers with a combined GDP of US$49.3 trillion.
Canada’s semiconductor sector includes more than 100 homegrown and multinational companies conducting research and development on microchips.
This extensive trade network offers significant opportunities for Canadian semiconductor companies to expand their market reach and enhance their competitiveness globally.
Government investment in the semiconductor industry
In July 2024, the Government of Canada invested C$120 million in a C$220-plus million project led by CMC Microsystems. This investment aims to bolster the semiconductor industry by creating a pan-Canadian network to support the design, manufacturing, and commercialization of semiconductors. The project, known as FABrIC, is expected to create hundreds of highly skilled jobs and foster innovation in semiconductor manufacturing processes.
Capitalizing on clean energy
Canada’s semiconductor industry benefits from the country’s abundant clean energy resources. With 70 per cent of the world’s freshwater supplies located in Canada, the country can provide reliable and sustainable energy for semiconductor manufacturing. This access to clean energy not only supports environmental sustainability but also enhances the appeal of Canada as a location for semiconductor production.
Artificial intelligence and machine learning
Canada is a global leader in artificial intelligence (AI) and machine learning (ML), which are increasingly important in the semiconductor industry. Canadian companies and research institutions are at the forefront of developing AI and ML technologies that enhance semiconductor design and manufacturing processes. This leadership can position Canada as a key player in the future of semiconductor innovation.
Innovation centres and manufacturing hubs
Canada is home to several semiconductor innovation centers and manufacturing hubs. These include the Canadian Centre for Electron Microscopy, the Waterloo Institute for Nanotechnology, and the Nano and Quantum Semiconductors Laboratory. These institutions provide critical support for research and development, fostering a collaborative environment that drives advancements in semiconductor technology.
Canada is already home to some of the world’s largest semiconductor producers and designers, including Samsung Electronics (OTC Pink: SSNLF), TSMC (OTC Pink:TSMWF), AMD (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), and Intel (NASDAQ:INTC).
In 2019, Samsung announced the expansion of its Samsung Advanced Institute of Technology (SAIT) artificial intelligence Lab Montreal to leverage the world class expertise at the Montreal Institute for Learning Algorithms (MILA) towards more efficient semiconductor manufacturing processes.
Institutions supporting the semiconductor industry
Numerous institutions across Canada support the semiconductor industry through research, development, and commercialization efforts. For example, the National Research Council of Canada’s Canadian Photonics Fabrication Centre (CPFC) plays a vital role in advancing photonics and semiconductor technologies. Additionally, initiatives like the Semiconductor Challenge Callout fund and strategic investments in companies like Ranovus further strengthen Canada’s semiconductor ecosystem.
Investment corner
Canada’s computer chip industry is supported by a robust ecosystem of government investment, clean energy resources, a skilled workforce, and leadership in AI and ML. With its strategic advantages and ongoing commitment to innovation, Canada is in a stable position to play a significant role in the global semiconductor industry.
Join the discussion: Find out what everybody’s saying about these stocks on the Tech and Semiconductors Bullboards, then check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image via Nano and Quantum Semiconductors Laboratory, Polytechnique
Montréal.)
