Canada is poised to play a crucial role in advancing artificial intelligence (AI) technologies in the coming years. As the country holds vital solutions to overcome various industry challenges, its significance is steadily growing. Recently, Eric Schmidt, former CEO of Google, drew media attention during a lecture at Stanford, where he stated that Canada should be a key partner for the United States in meeting the escalating energy demands of AI. However, energy is just one facet of Canada's success story in the AI landscape.
Canada's innovative capabilities in the semiconductor industry are evident through its top research institutions and startups. A prime example is the upcoming "Canada-Taiwan Semiconductor Co-Innovation Forum," co-hosted with the Global Semiconductor Alliance (GSA) in Hsinchu, Taiwan, on September 6. This event, strategically timed to coincide with SEMICON Taiwan 2024, provides an opportunity to connect with potential partners, investors, and customers in the semiconductor sector. It underscores Canada's ambition to carve out a unique niche in the AI era.
Canada's strengths in advanced packaging, photonics, power semiconductor devices, data communications, materials, academic research, and integrated circuit (IC) design form a robust foundation for addressing the AI dilemma—achieving greater computing power while reducing energy consumption.
The country's semiconductor sector now boasts over 500 companies, including more than 100 design firms, 30 applied research laboratories, and five commercial facilities specializing in areas like compound semiconductors and microelectromechanical systems. Canada's need to connect its population across a vast area through telecommunications has positioned it as a global leader in photonics.
In terms of locations, compound semiconductors are produced in Ottawa by companies like GaN Systems (recently acquired by Infineon Technologies). MEMS are built in Bromont, while superconducting circuits are also manufactured in Quebec. The photonics industry is concentrated in the western part of the country, with companies like Edmonton's Applied Nano Tools leading the way.
Contributing to solving the AI dilemma
Ed Jager, Director of Trade and Investment of the Canadian Trade Office in Taipei, noted in the opening remarks welcoming the Canadian Mission on the day before SEMICON Taiwan begins, "This mission brings together a significant delegation demonstrating the scale and importance of our efforts and marks a significant step forward in our efforts to strengthen the collaborative ties between Canada and Taiwan in the semiconductor sector."
Among the ten companies attending the event in Taipei are Blumind Inc., CEM Works, InPho, Procero Inc., RANOVUS Inc., Solace Inc., Stanthera Inc., StarIC, and the PEER Group. Many of these companies are seeking partnerships, customers, and suppliers, while others have already established collaborations with industry leaders such as TSMC and MediaTek.
Canadian photonics companies InPho and RANOVUS are well-positioned for this year's event. On September 3, SEMI announced the establishment of the "SEMI Silicon Photonics Industry Alliance" to foster development in silicon photonics and strengthen Taiwan's silicon photonics ecosystem. Led by TSMC and ASE, this SEMI initiative has united industry partners, including the Taiwan Industrial Technology Research Institute (ITRI), Browave, FOCI, Foxconn, MediaTek, Quanta Computer, and more than 30 other companies, all committed to building a comprehensive silicon photonics ecosystem in Taiwan. RANOVUS is already shipping pre-commercial products to major semiconductor firms and hyperscalers, positioning itself for significant growth.
As transistor miniaturization becomes increasingly challenging, experts like Dr. Chenming Calvin Hu, known as the father of FinFET, predict that technologies such as IC stacking and heterogeneous integration will become essential in the future of AI. Consequently, more companies are directing resources toward research and development in materials, advanced packaging, and system optimization. Semiconductor firms also rely on automation enablers like the PEER Group to enhance manufacturing processes.
In July, Canada announced a CAD120 million investment in a CAD220 million project led by CMC Microsystems aimed at creating a pan-Canadian network to support semiconductor design, manufacturing, commercialization, and the development of advanced intelligent sensor technology. Notably, Canada is home to strong AI and software firms like Blumind, Procero, StarIC, and Solace, which are crucial for optimizing AI inferencing and achieving sustainability.
Innovators such as CEM Works, which specializes in electromagnetic simulation design tools, and Stathera, a provider of MEMS-based timing solutions, are exploring new methods to help the industry confront challenges.
Additionally, Canada collaborates closely with the United States in the corridor between New York and Bromont. Research and prototyping centers, like C2MI in Bromont, provide Canadian companies with opportunities to build partnerships with fabs in the US Northeast Tech Hub, including Albany, Malta, and the Mid-Hudson Valley.
Driven by the US$52 billion CHIPS Act, Micron has committed to constructing a $100 billion mega fab near Syracuse, while GlobalFoundries is modernizing its Burlington, VT plant to produce next-generation compound semiconductor chips—an area in which Canadian IC design houses excel.
With the signing of a Science, Technology, and Innovation Agreement with Taiwan, the Canada International Innovation Program (CIIP) will provide up to CAD600,000 to Canadian small and medium enterprises (SMEs) that collaborate with Taiwanese firms to facilitate the commercialization of their innovative products.
Canada's decision-makers are strategically leveraging Taiwan's manufacturing strength and the alliance with the US, the two most powerful semiconductor national players, to create synergy through partnerships that support the growth of its startups and corporations. As such, Canada's potential in the AI era is not to be underestimated.
Credit: Judy Lin
