From Quiet Strength to Global Leadership: This is Canada’s Semiconductor Moment 

Canada’s technology sector is at a rare inflection point; fractured supply chains, unpredictable trade tariffs, and other unforeseen disruptions are generating instability. In the global semiconductor industry, this also represents a window of opportunity for Canadian researchers and startups. 

A new race is on to secure resilient, trusted sources of technology production and, importantly, innovation.  Canada is poised to step into the spotlight in the global semiconductor ecosystem.

From Vision to Velocity: What Changed Since 2023 (Hint: Everything)

For decades, Canadian researchers, engineers, and entrepreneurs have been building a foundation of excellence in microelectronics, photonics, MEMS, and quantum technologies. Canada has cultivated world-class talent, developed cutting-edge IP, and supported hundreds of startups. What’s changed is the world’s appetite—and need—for what we’ve been quietly working on together in the background.

In 2023, I wrote that Canada was on the cusp of a semiconductor renaissance. Today, that renaissance is underway, thanks in large part to the launch of FABrIC—a five-year, $223 million national program to secure Canada’s future in semiconductors. Funded by Innovation, Science and Economic Development Canada (ISED) and managed by CMC Microsystems, FABrIC lowers barriers faced by Canadian companies to develop semiconductor manufacturing processes, create Internet-connected products and services (IoT), and to export into a global market. 

FABrIC is more than funding: it is itself an innovation for catalyzing competitiveness and strengthening the national semiconductor ecosystem.  From national security to nautical navigation, Canadian innovations are finding their launchpad to commercialization. 

In its first year, FABrIC funded 20 projects across Canada, from quantum photonics to next-generation Wi-Fi solutions, with every project tied to a clear commercialization path. FABrIC is a good start for what Canada needs at this pivotal moment, lifting up innovation incubators and empowering researchers and entrepreneurs with the tools and support they need to move faster and scale smarter.

New Partners and Markets for Canadian Semiconductors

With the trade relationship with the United States under strain, Canada’s semiconductor industry is mirroring what we are seeing in other sectors. Canadian exports to the US fell to 68% of total exports in May of 2025, down from a monthly average of 75% last year. This is the lowest share on record as companies expand trade beyond the US.

In semiconductors, Canada is working closely with other allies to secure our supply chain and develop new trade relationships. In July, we formed a new partnership with the UK to build a stronger semiconductor supply chain, and our 20+ year Agreement for Scientific and Technological Cooperation with India continues to expand. Canada has agreements with global semiconductor powerhouse Taiwan covering supply chain resilience, foreign investment and more. CMC is also looking to finalize an agreement for photonics packaging with Taiwan in a matter of months. Canadian innovations developed through FABrIC and other avenues will have a strong export network of international markets.  

The Stakes: Quantum, Sovereignty, and the Next Frontier

Semiconductors are no longer just an economic driver—they are a matter of national security and digital sovereignty. Nowhere is this more evident than in the fast-evolving world of quantum computing.

Canada is already a global leader in quantum research, with university labs and firms across the country pushing the boundaries of what is possible. But if history teaches us one thing, it is that research alone—no matter how outstanding—does not necessarily lead to commercialization. That means building the chips, hardware infrastructure, software stacks, and the knowledge base that will power the quantum era.

FABrIC is already funding projects in this space—from 3D quantum chip prototyping to photonic circuit fabrication for scalable quantum I/O. These are the building blocks of a future where Canada doesn’t just participate in the quantum economy—we help define it.

We are not alone. The US, EU, and China are investing hundreds of billions to drive their own ambitions in this sector. Now is the moment for Canada to propel the work we have achieved until now into a true global leadership role. How? By acting boldly to establish our leadership in specialized, high-value areas of the semiconductor value chain where Canada has a proven edge: quantum, photonics, AI-optimized chips, compound semiconductors, sustainable manufacturing, and advanced packaging.

The Path Forward: Talent, Tools and Ambition

Seizing this unique moment means doubling down on our greatest national asset: our talent. Canada’s highly qualified personnel (HQP)—graduate students, postdocs, and early-career engineers—are our most valuable semiconductor asset. FABrIC is already enabling the training of 25,000 students and 1,000 professors over five years. But we need to go further: from high school STEM programs to national fellowships, we must build a talent engine that rivals the best in the world.

Second, we must continue to grow support that truly incubates Canadian research. That means giving our innovators access to the tools, commercial factories and design environments they need to prototype, test, and iterate. CMC’s national design network has been doing this for 40 years; FABrIC is scaling it for the next 40.

Finally, we must aim high. Canada will never outspend the US or outscale Taiwan. But we can out-innovate in areas where we’ve already shown leadership by fostering a national semiconductor strategy that’s not just reactive, but truly visionary.

This is our moment to transform what we have quietly built over decades and make Canada a global semiconductor leader.