Chip Shot: A Semiconductor Strategy for Canada
Executive Summary
Semiconductors are critical components of countless business and consumer products, including cars, computers, appliances, gaming systems, and manufacturing equipment. Economies that depend on semiconductors are vulnerable to bottlenecks and geopolitical disruption in highly fragmented global value chains. Canada is no exception.
With the semiconductor industry in the midst of technological, geopolitical, and economic change, firms and governments in the United States, China, Europe, India, and elsewhere are making multi-billion-dollar investments to generate and secure advantages. Canada has strengths that could be enhanced with strategic investment. Yet, the inertia that plagues much of the Canadian innovation ecosystem also seems to affect the semiconductor sector. Canada has been slow to act.
Canada should focus its semiconductor strategy on better integration with global value chains rather than self-sufficiency. For Canada to be successful in key sectors of the industry, firms and governments should increase funding for research and development, commercialization, and intellectual property protection; develop stronger programs for semiconductor start-ups and scale-ups; enhance semiconductor innovation infrastructure; improve education and career pathways for highly skilled personnel; and strengthen partnerships with major actors in global value chains, especially the United States.
Authors:
- Daniel Munro, Co-Director, Shift Insights
- Creig Lamb, Co-Director, Shift Insights
Disclaimer:
This work has been produced by the authors. It is funded and owned by Canadian Standards Association. The views expressed in this publication are those of the authors. It is not meant to represent the position or opinions of Canadian Standards Association nor the official position of any staff members. This work is meant to provide general information in regard to the subject matter covered. Canadian Standards Association is not responsible for any loss or damage which might occur as a result of your reliance or use of the content in this publication.
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