Fishing for chips: Making the case for a homegrown Canadian semiconductor industry

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With industry in massive period of flux, some think Canada has an opportunity to build on its innovation legacy and stake a claim in the global tech shakeout

“We started work on development of a new technology, a new detector, that can in real time detect the presence of bacteria and viruses in the air,” she said. “We are building a new optical system and we are miniaturizing what is available into a much smaller form … or the size of the device.”

Given the impact across North America, the U.S. has pledged to reclaim ground lost to semiconductor technology and manufacturing powerhouses in Asia, and there is a growing cadre of of professionals in the sector who believe Canada, too, has an opportunity to stake a claim in the global tech shakeout — building on a legacy of innovation dating back to the heyday of Nortel Networks Corp. in the 1990s.

I see this as an opportunity for Canada and the U.S. to build together, for us to collaborate together then to sell them to the rest of the worldNg was on hand in March when the government announced nearly $5 million in funding for Markham, Ont.-based ventureLAB’s Hardware Catalyst Initiative, Canada’s first silicon incubator.

Melissa Chee, VentureLab’s chief executive, said she believes Canada can develop a hardware industry by scaling up startups and tapping the talent in world-recognized science, math, and technology programs at Canadian universities.Investing now could, in turn, also make Canada a more appealing place for international chip companies to do business, Chee said. The efforts have already attracted Nuvia Inc., a Santa Clara, Calif.

Canada’s revenue from semiconductor and other electronic component manufacturing is projected to grow to US$3.8 billion dollars by 2024, according to Statistica.com. By comparison, Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker, raked in revenue of US$47.78 billion in 2020. But instead of trying to compete in what Harling called “commodity” semiconductors, Canada should focus on building niche specialty products, said the chief executive of CMC Microsystems, a not-for-profit that creates and then shares platforms to reduce costs and speed up technology development and adoption.

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“A 2007 report by the Information Technology Association of 🇨🇦 urged the country, and particularly Ontario, to revitalize the “microelectronics” sector to regain ground in a fast-evolving global industry where manufacturing costs were skyrocketing and consolidation was underway.”

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