The country has “real capabilities” in compound photonics and packaging, Simon Kennedy, deputy minister of Innovation, Science and Economic Development Canada, said at the Public Policy Forum’s fall lecture on Wednesday. “We have capabilities, and the Americans are interested.” (The Logic)

Talking point: The U.S. CHIPS and Science Act, which the Biden administration enacted in August, contains US$52.7 billion for semiconductor R&D and production. Most of that funding is focused domestically, but Kennedy noted that the plan also includes money to collaborate with other countries. “They’re making massive investments because they want to reshore this stuff and put it in the States, but they’re also interested in working with allies,” he said. In October, Innovation Minister François-Philippe Champagne said Ottawa was in “advanced discussions” on semiconductor manufacturing deals. Kennedy also noted that the federal government is working on responses to another blockbuster U.S. bill, the Inflation Reduction Act, which pledges US$369-billion for green energy and industry.