Canada announces significant investment in Canadian semiconductor and photonics industries

Innovation, Science and Economic Development Canada

$240 million will help solidify Canada's role as a global leader in photonics and will bolster the development and manufacturing of semiconductors

February 28, 2022 - Ottawa, Ontario

Semiconductors, often called chips or microchips, are critical to Canada's national security, economy and technological interests. The Government of Canada recognizes that issues around semiconductor supply have an impact on all sectors of the economy and affect Canadians in their everyday lives. This is why the government is committed to collaborating with Canadian researchers and businesses to strengthen Canada's position in the industry.

Today, the Honourable François‑Philippe Champagne, Minister of Innovation, Science and Industry, announced the Semiconductor Challenge Callout, a fund of $150 million through the Strategic Innovation Fund to make targeted investments to build on Canada's domestic strengths associated with the development and supply of semiconductors. He also announced $90 million in funding for the National Research Council of Canada's Canadian Photonics Fabrication Centre (CPFC).

The Challenge announced today represents Canada's initial commitment to investing in innovation projects that will reinforce and scale up our innovative semiconductor ecosystem. The government is calling on businesses to identify ambitious, transformative proposals in the priority areas of research, commercialization, and expanded semiconductor manufacturing capacity. This will help the Canadian semiconductor industry enhance its role in the integrated North American information and communications technology supply chain.

The investment in the CPFC will see critical upgrades of equipment, improving the centre's capacity and capability to address the ever-increasing complexity of leading-edge technology being brought to market by its clients. A key asset to the Canadian photonics sector over the last two decades, the CPFC is the only compound semiconductor foundry in North America that is publicly operated and open to all for use. It has an impressive track record of delivering impactful photonics device fabrication services to the research and private sectors, helping to grow many Canadian small and medium-sized enterprises in such industries as telecommunications, environmental sensing, automotive, defence and aerospace.

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