Canada to invest $189 million to develop and strengthen semiconductor industry
Canada has announced that it will invest a total of C$240 million ($189 million) into its semiconductor industry to strengthen manufacturing and research of chips that are critical to national security and technological advancement.
François–Philippe Champagne, Minister of Innovation, Science, and Industry, launched a C$150 million Semiconductor Challenge Callout fund to develop and supply semiconductors.
Another C$90 million has been earmarked to the National Research Council of Canada's Canadian Photonics Fabrication Centre. Photonics is used in telecommunication networks.
"By investing in Canada's semiconductor industry, we are making a firm commitment to businesses looking to invest in Canada," Champagne said in a declaration.
"Whether it's high-value or large-scale manufacturing, we want to see Canada be home to the world's leading semiconductor manufacturers."
Semiconductors, often referred to as chips or microchips, are used in a variety of everyday devices, including medical equipment to automobile parts. Several industries, from carmakers to mobile phone companies, around the world, have been hit by a shortage of semiconductors caused by COVID-19 supply-chain disruptions as well as rising semiconductor demand at consumer electronic companies.
That has led to manufacturers seeking out reliable supplies of chips to avoid disruption.
Champagne stated the goal of this investment is to "reinforce Canada's position in the industry."
At present, Canada's semiconductor sector consists of over 100 domestic and multinational companies conducting research and development on microchips.