Nunavut Post

Wednesday, February 28, 2024

The Semiconductor Council of Canada has released an action plan

The Semiconductor Council of Canada

Key Takeaways:

  • The Semiconductor Council of Canada has released a comprehensive action plan to place Canada as a leader in the $7 trillion global semiconductor market. 

Canada’s Semiconductor Action Plan, lays out short-term, medium-term, and long-term recommendations to build Canada’s semiconductor industry as the global chip shortage continues to wreak havoc on the country’s supply chain and economy. 

The action plan positions Canada as a developer, manufacturer, and global supplier of semiconductor products used in our most cutting-edge technologies, such as electric vehicles, medical devices, consumer electronics, precision agriculture, and others. 

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The report highlights Canada’s potential to develop a resilient semiconductor sector that will fuel economic growth based on data-driven insights from more than 100 industry stakeholders.

Despite lagging behind major chip markets like Taiwan, China, Israel, and the United States, investing in the domestic semiconductor industry will allow Canada to navigate supply chain fluctuations better, manage shifting international relations, and become a leader in emerging industries like quantum computing, artificial intelligence, battery production, and cleantech.

The action plan makes suggestions based on four overarching goals:

Strengthen and Diversify the Supply Chain

The urgent demand for semiconductors in Canada and around the world is affecting production and supply. To ensure a steady supply of critical chips, Canada must act swiftly and decisively.

Companies and industries must work together to secure our imported supply of chips while also making a case for increased domestic production.

Develop Onshore Manufacturing

Manufacturing semiconductors is an expensive and time-consuming process. However, given the increasing global demand for semiconductors, domestic production would provide significant economic benefits to Canada.

Establish a Unique Specialization and Brand for Canada

Within the semiconductor sector, Canada can specialize in two key areas:

  1. Design and research and development
  2. Electric vehicles, batteries, and sensors

These two broad areas benefit from Canada’s existing expertise and top engineering talent. As a result, these sectors are poised for significant growth and support a diverse range of critical domestic industries. Moreover, they offer substantial opportunities for Canada to establish itself as a vital hub of innovation in the value chain.

Foster Innovation and Support Market Development

Companies in the semiconductor industry require substantial funding and can take years to scale and see a return.

Because of a semiconductor company’s steep and ongoing capital requirements, Canadian venture capitalists and angel investors cannot provide sufficient funding. As a result, to support growth in the Canadian semiconductor industry, a combination of public partnerships, programs, and incentives is required.

Source: Businesswire News

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