An official from the Canadian government announced on Monday that the country will invest a total of $240 million in its semiconductor industry to strengthen the manufacturing and research of chips that are critical to national security and technological advancement.
The Semiconductor Challenge Callout Fund, established by François–Philippe Champagne, Minister of Innovation, Science and Industry, will invest $150 million in the development and supply of semiconductors.
Another $90 million has been granted to the Canadian Photonics Fabrication Centre, which is operated by the National Research Council of Canada. Photonics is a technology that is utilized in telecommunication networks.
We are demonstrating our commitment to entrepreneurs wishing to invest in Canada by investing in the country’s semiconductor industry,” Champagne said in a statement. “Whether it’s high-value or large-scale manufacturing, we want Canada to be known as the home of the world’s leading semiconductor manufacturers,” said the group.
A wide range of common gadgets, ranging from medical equipment to vehicle parts and accessories, rely on semiconductors, which are also known as chips or microchips.
Several businesses, ranging from automobile manufacturers to mobile phone manufacturers, have been adversely affected by a shortage of semiconductors as a result of COVID-19 supply-chain disruptions, as well as increased semiconductor demand at consumer electronic companies throughout the world.
As a result, chip producers are looking for reliable sources of chips in order to minimize supply disruptions.
According to AutoForecast Solutions, the auto sector, for example, has eliminated 643,100 vehicles from its production schedule for 2022 because of the chip shortage. Automobile manufacturers, according to the forecasting organization, will reduce production by about 1.4 million units this year.
The purpose of this investment, according to Champagne, is to “strengthen Canada’s position in the industrial sector.” Over 100 domestic and international companies are currently engaged in microchip research and development in Canada’s semiconductor industry.