ISED Invests $120 Million to Expand CMC Microsystems’ Semiconductor Network

François-Philippe Champagne, Canada's Minister responsible for Innovation, Science, and Economic Development (ISED), has announced a significant investment of $120 million into CMC Microsystems to establish the Fabrication of Integrated Components for the Internet’s Edge (FABrIC) network. This investment, facilitated through the Strategic Innovation Fund (SIF), aims to bolster Canada's semiconductor industry by supporting the design, manufacturing, and commercialization of semiconductors, as well as the development of intelligent sensor technology.

FABrIC will operate in collaboration with CMC's partners across Canada, aiming to create a cohesive ecosystem that unites stakeholders crucial for advancing semiconductor innovation. Gordon Harling, CEO of CMC Microsystems, highlighted that this initiative will provide Canadian entrepreneurs and researchers with essential resources to foster semiconductor innovation, manufacture competitive products, and enhance manufacturing processes within Canada.

The overarching goal of FABrIC, as outlined on its website, is ambitious: over a five-year period, it aims to catalyze the launch of 75 new companies, facilitate the filing of 215 intellectual property applications, and train 25,000 highly qualified personnel in academia. This initiative also aims to support startups in developing prototypes that can attract private investment or secure customer orders, potentially offering funding of up to $10 million for projects in specific hardware fields, as reported by The Logic.

CMC Microsystems, established in 1984, has a longstanding commitment to supporting research and innovation across various high-tech domains, including microelectronics, photonics, micro-electromechanical systems (MEMS), Internet of Things (IoT), artificial intelligence (AI), and quantum software and hardware. The organization's role in fostering technological advancement has been pivotal in Canada's efforts to maintain competitiveness in global markets.

The investment in FABrIC comes at a crucial time for Canada's semiconductor industry. Last year, several industry leaders, including CMC, formed SILICAN, a lobbying group aimed at advocating for the interests of the semiconductor sector within Canada. SILICAN has actively sought targeted governmental support to strengthen domestic chip production capabilities, reflecting the growing importance of semiconductors in various technological applications.

Earlier in April, the federal government also allocated $46 million from the SIF to IBM to enhance operations at its semiconductor assembly plant in Bromont, Québec. This investment underscores Canada's broader strategy to bolster its semiconductor manufacturing capabilities, recognizing the sector's strategic importance in fostering economic growth, technological advancement, and job creation.

Canada's investment of $120 million into the Fabrication of Integrated Components for the Internet’s Edge (FABrIC) network through CMC Microsystems represents a proactive step toward advancing semiconductor innovation and manufacturing within the country. This initiative is strategically designed to foster collaboration among industry stakeholders, academia, and government, aiming to consolidate Canada's leadership in semiconductor technologies on a global scale. By supporting the design, manufacturing, and commercialization of semiconductors, as well as the development of intelligent sensor technology, FABrIC aims to enhance Canada's technological capabilities. The investment, facilitated by the Strategic Innovation Fund (SIF), underscores Canada's commitment to staying competitive in the rapidly evolving semiconductor industry.

CMC Microsystems, with its extensive experience in supporting research and innovation across various high-tech sectors including microelectronics, photonics, IoT, AI, and quantum technologies, is well-positioned to lead FABrIC. The initiative aims to catalyze the launch of new companies, foster the development of intellectual property, and train a significant number of highly qualified personnel over the next five years.

This initiative comes amid growing global recognition of the strategic importance of semiconductor technologies. Canada's proactive investment in FABrIC aligns with efforts by other leading economies to strengthen domestic capabilities in semiconductor manufacturing and innovation. It also reflects broader efforts to address critical technological challenges of the 21st century, such as enhancing digital infrastructure, advancing sustainable technologies, and driving economic growth through innovation.

The establishment of FABrIC is expected to not only bolster Canada's semiconductor industry but also contribute to job creation, economic diversification, and the attraction of private sector investment. By nurturing a collaborative ecosystem that supports innovation from research through to commercialization, Canada aims to solidify its position as a global leader in semiconductor technologies. Furthermore, initiatives like FABrIC are pivotal in ensuring Canada's resilience in the face of global supply chain disruptions and technological dependencies. By developing robust domestic capabilities, Canada can mitigate risks associated with reliance on international semiconductor markets and strengthen its sovereignty in critical technology sectors.

In conclusion, Canada's investment in FABrIC through CMC Microsystems represents a forward-thinking approach to enhancing semiconductor innovation and manufacturing. By fostering collaboration across sectors and investing in cutting-edge technologies, Canada aims not only to bolster its own competitiveness but also to contribute meaningfully to global technological advancements and economic resilience in the digital age.