Semiconductors are critical to Canadians’ daily lives and are needed for current technologies and future innovations in nearly every industry, including automotive, telecommunications, defence and low-carbon technologies.
Canada has a long-established and innovative semiconductor industry that continues to flourish in global markets and capitalize on an increasingly digital and green economy. The Government of Canada is committed to making advancements to position Canada as a critical global supplier of specialized semiconductor technologies.
About semiconductors
Semiconductors are everywhere. Did you know that the average Canadian interacts with hundreds of semiconductors every day?
Semiconductors power virtually all electronic devices and systems, including appliances, smartphones and computers, automobiles, medical equipment, and satellites.
They also have an impact on Canada’s economic prosperity, environmental goals and national security.
But what is a semiconductor?
A semiconductor, often called a chip or microchip, is a material used for electrical conductivity. It’s conductivity falls somewhere between a conductor and an insulator which gives it the unique ability to control the flow of electricity in electronic equipment and devices.
Semiconductors are critical to the future of Canada’s economy. These tiny components are building blocks for integral parts of the digital economy, like artificial intelligence, quantum computing and quantum sensors, and other emerging technologies.
A strong semiconductor industry for Canadians
As global demand for semiconductors increases, the benefits to growing Canada’s semiconductor industry are numerous. Canada is positioning itself as a leader by:
Securing supply chains
The Government of Canada is seizing opportunities to grow the domestic semiconductor industry.
Strengthening Canada’s research and development
Canada is recognized as an R&D and design hub, with a reputation for world-leading expertise in high-value, specialized areas of semiconductor manufacturing such as compound semiconductor fabrication and advanced packaging.
Fighting climate change
Canada has leading-edge technologies that support communications delivery. Semiconductors play an important part in our fight against climate change, as new low-carbon technologies and products require large quantities of sustainable and efficient semiconductors.
Ensuring national security
The semiconductor industry heavily relies on international cooperation. Canada is working with like minded nations, including the United States, to build resilient semiconductor supply chains.
How semiconductors are made
At a high level, the production of semiconductors can be broken down into three stages:
- Design
- Involves designing the overall architecture and layout of the semiconductor as well as validation, verification, and testing to the point where it can be mass produced.
- This stage is very complex; design is a multi-year process that is knowledge-based and skill-intensive, and it relies heavily on research and development.
- Fabrication
- Involves the manufacturing of the physical semiconductor device in a fabrication plant.
- Consists of etching electronic components onto wafers, which are typically silicon. This can take anywhere from 12 to 20 weeks.
- Assembly, testing and packaging (ATP)
- Consists of placing fabricated semiconductors into a protective package to connect to end products. This back end of the manufacturing process is often referred to as the ATP stage.
- The internal structures of semiconductors are continuously advancing as they get smaller and smaller—the leading-edge chip is now only a few atoms wide! To accommodate these technological advancements, there is increased focus on finding new ways to combine and layer microchips. This is called advanced packaging.
- ATP can take up to six weeks to complete and requires specialized facilities for production.
Latest news
- April, 2024, The Prime Minister, Justin Trudeau, announced a new federal investment of $59.9 million to support projects from IBM Canada and the MiQro Innovation Collaborative Centre (C2MI), one of Canada’s microelectronics research and innovation leaders, to create more semiconductors and unlock economic growth.
- In March 2023, ISED announced a $36 million contribution through the Strategic Innovation Fund (SIF) to Ottawa-based Ranovus Inc. to support a $100 million project that will advance the domestic production of semiconductor technology for AI applications.
- A joint statement issued following the March 2023 visit by President Biden to Ottawa announced that Canada would provide up to $250 million in investments through SIF for semiconductor projects.
- The Declaration of North America of January 10, 2023committed Canada, the United States and Mexico to forging stronger regional supply chains in key industries of the future, such as semiconductors, as well as to promoting targeted investment in these industries.
- In February 2022, ISED launched its $150 million Semiconductor Challenge Callout which sought ambitious, large-scale ideas that address how Canada can build on existing R&D and manufacturing strengths, contribute to a national network and supply chain, and position Canada as a critical global supplier of semiconductors, including in the areas of compound semiconductors, sensor and microelectromechanical systems, and advanced packaging.
- Budget 2022 proposed to provide $45 million over four years, starting in 2022–23 on a cash basis, to Innovation, Science and Economic Development Canada to engage with stakeholders, conduct market analysis and support projects that will strengthen Canada’s semiconductor industry.
- Budget 2021 announced $90 million in funding for the National Research Council of Canada’s Canadian Photonics Fabrication Centre (CPFC). The CPFC is one of North America’s only contract compound semiconductor foundries and is a pillar of Canada’s semiconductor industry.