While the country currently has no chip fabrication plants, Innovation Minister François-Philippe Champagne said Friday he’s “cautiously optimistic” that a “number of manufacturers are committed to increase their presence in Canada.” He was speaking to reporters from Washington, D.C., where he discussed supply chains with U.S. Commerce Secretary Gina Raimondo and met with the Semiconductor Industry Association. (The Logic)

Talking point: The U.S. CHIPS Act, enacted in August, allocates US$52.7 billion in subsidies and programs for component R&D and production in that country. Canada has so far promised $150 million out of the flagship federal Strategic Innovation Fund to encourage companies to set up shop here. On Wednesday, Champagne asserted that sum was enough to attract projects, but also said Ottawa was willing to put up more capital if necessary. Still, “government support is not front and centre in these discussions,” he said, citing availability of skilled workers, water and green power, as well as the ability to link into North American supply chains, as factors in Canada’s favour. The country could take up the packaging and testing work currently exported to China, and specialize in auto chips, Champagne suggested; the Liberal government has already pledged billions to build out an EV supply chain here. Canada’s Semiconductor Council, a new lobby group, has welcomed the $150-million SIF allocation as a “start.”

Update: This briefing has been updated to include Innovation Minister François-Philippe Champagne’s comments on supply chains.