Develop silicon photonics and compound semiconductor design specializations
Pursue CHIPS Act-equivalent Canadian incentives for semiconductor activities
Establish partnerships with US and Asian foundries for guaranteed fab access
Build quantum computing chip design capabilities as a national strategic priority
Invest in EDA tool development to reduce dependency on US-controlled design software
Semiconductor design services are largely intangible exports protected by CUSMA digital trade provisions. However, US CHIPS Act provisions create incentives for semiconductor activities to locate in the US rather than Canada. Export control restrictions on advanced semiconductor technology increasingly affect Canadian firms with Chinese client relationships.
Canadian semiconductor designers rely entirely on foreign foundries (TSMC, Samsung, GlobalFoundries) for chip fabrication. EDA tool licenses from US-based Synopsys, Cadence, and Siemens create critical vendor dependencies. Export control compliance for dual-use semiconductor designs adds regulatory burden for firms operating across jurisdictions.
Canada lacks domestic semiconductor fabrication but has pockets of design excellence, particularly in photonics (Ottawa), automotive chips, and FPGA design. Competition from Indian and Israeli design centres intensifies for semiconductor engineering talent. Canadian firms differentiate through specialization in emerging areas like silicon photonics and quantum chip design.
Global semiconductor reshoring creates opportunities for Canadian design firms to participate in North American supply chain buildout. Photonics and quantum chip design represent areas where Canada can establish differentiated positions. The sector's growth requires policy support comparable to US CHIPS Act incentives to prevent further talent migration.
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