Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Canada puts up $120M for program to help semiconductor startups get going

OTTAWA — The federal government is providing $120 million for a program to produce more semiconductor startups and new advanced technologies as Canada tries to build its chip base, The Logic has learned.  

Exclusive

Canada puts up $120M for program to help semiconductor startups get going

CMC Microsystems will support firms and researchers to design and produce advanced technology prototypes

By Murad Hemmadi
Innovation Minister Francois-Philippe Champagne touring photonics scale-up Ranovus in Ottawa in March 2023. Photo: The Canadian Press/Justin Tang
Jul 4, 2024
A A
A Small A Medium A Large
Share

Gift

Share

OTTAWA — The federal government is providing $120 million for a program to produce more semiconductor startups and new advanced technologies as Canada tries to build its chip base, The Logic has learned.  

Innovation Minister François-Philippe Champagne will announce the five-year award from the Strategic Innovation Fund (SIF) for CMC Microsystems at an event in Montreal on Thursday morning. The not-for-profit helps researchers commercialize hardware they develop and firms bring products to the prototype stage. 

Talking Points

  • The federal Strategic Innovation Fund has awarded $120 million to CMC Microsystems, a not-for-profit that helps hardware firms and researchers develop new products
  • The organization’s $223-million Fabric program will give participants access to tools, staff and cheaper prototype production to bring new semiconductors and other advanced technologies to market

Participants in the CMC-led $223-million Fabric program will get cheaper access to development software and tools, as well as training on how to use them. They will also work with the organization’s 40-person technical staff. 

Once the researchers and firms have created their designs and specifications, CMC will subsidize and bundle together their prototype production runs at partner fabrication facilities to make them more affordable; manufacturers typically have minimum purchase orders that start in the tens of thousands of dollars. 

Startups will come out of the program with prototypes they can show to private investors to raise funding, or to customers to secure orders, said CMC CEO Gordon Harling.  

In addition to these supports, Harling said the program will fund projects of up to $10 million each to develop new technologies in hardware fields like semiconductors; superconductors, which carry energy more efficiently; micro-electromechanical sensors used for measurement; and light-based photonics. Harling said selected companies will receive up to 50 per cent of their costs, while academic labs can be fully underwritten.

An advisory council will select projects to back. The SIF award’s project envelope includes $30 million conditional on matching provincial funding. Harling said CMC has been in discussions with Alberta, British Columbia, Nova Scotia, Ontario and Quebec about participating. 

Related Articles

Prime Minister Justin Trudeau, wearing a grey suit and blue tie, speaks at a lectern before a backdrop of onlookers in a large room with fluorescent lights and a white ceiling

Canada puts $59.9M into IBM’s $1B Quebec semiconductor packaging expansion

By Murad Hemmadi

Semiconductor sector debates Canada’s best bet to cash in on reshoring of chips

By Murad Hemmadi

Canada is one of several countries seeking to establish domestic strength in chips and other critical technologies, and to reshore their supply chains amid rising geopolitical tensions and demand for the components in industries from AI to automotive. 

The U.S. is subsidizing several new fabs for advanced semiconductors via the US$52.7-billion CHIPS and Science Act. The Liberal government wants to integrate Canadian firms and facilities in those supply chains, and has so far allocated $250 million from the SIF. Innovation Minister François-Philippe Champagne has touted a northeastern chip corridor which would encompass several R&D and manufacturing facilities.

In April, Ottawa announced $59.9 million from the SIF for IBM to expand its semiconductor packaging plant in Bromont, Que., and develop new technologies with a local lab. The fund previously awarded $36 million to Ranovus, an Ottawa-based photonics scale-up.

The Fabric program, which CMC first proposed in August 2021, plays into Canada’s broader chip push, and the cross-border integration of the field. Harling said CMC sends about a quarter of clients’ bundled manufacturing orders to GlobalFoundries, a firm headquartered in Malta, N.Y., that’s expanding with CHIPS Act money. Last year, that amounted to about 90 designs. Under their arrangement, CMC makes a margin on each transaction, with GlobalFoundries eventually taking customers on directly when they reach US$10 million in annual orders.

The federal funding arrives at a crucial time for the organization, originally established in December 1983 as the Canadian Microelectronics Corporation. The Canada Foundation for Innovation’s backing for a major CMC program ended last fiscal year, and the organization has faced financial difficulties, according to tech industry sources to whom The Logic granted anonymity because they were not authorized to speak publicly. 

Harling acknowledged cash flow was constrained, due in part to a longer-than-expected timeline for the federal Innovation Department to close the SIF deal. It’s not the first time: in November 2018, Harling notified staff CMC would have to close as the Natural Sciences and Engineering Research Council of Canada declined to renew its funding. 

Gift the full article

But Harling said the new program and other initiatives will help the organization avoid any more close calls. Beyond the funding and fees, CMC will be able to resell any process innovations and technology it helps create. “In five years time, I would like CMC to be self-sustaining, so I don’t have to lay everybody off at the end of Fabric,” Harling said. He cited growing commercial revenues. CMC’s annual reports show it earned $7.6 million from user fees, consulting and other non-government sources in the 2022–23 fiscal year, up from $3.4 million in 2018–19.

The organization has also been building out its international business. It recently set up a U.S. subsidiary, which has started with training courses on design tools for academic institutions and other clients in New York. Harling said it’s also in discussions with universities and firms in Australia, Brazil and Mexico. International customers will receive similar services to the ones Ottawa’s SIF award is subsidizing, but pay full rates. 

#CMC Microsystems #economy #semiconductors #Strategic Innovation Fund #Tech

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: The Canadian Press/Justin Tang

Most Popular This Week

Close-up of a red American roadside call box marked “Made in the U.S.A.,” with a blurred semi-truck approaching on Gordie Howe International Bridge.
News

U.S. industry leaders plead for truce as tariff fight escalates

By Anita Balakrishnan
Exterior of a University of Toronto building
News

Canadian universities are still struggling to commercialize their research, new data shows

By Catherine McIntyre
A head-on shot of Mark Carney at a lectern embossed with a maple leaf carved from wood. There is a row of Canadian flags behind him, and he's looking at the camera with a serious expression.
News

How Mark Carney plans to wage trade war against the United States

By Laura Osman and Murad Hemmadi
A shot from the bottom of a flight of red brick stairs of Dominic LeBlanc emerging from a building, with Janice Charette and Mark Wiseman in single file behind him.
News

Canada pulls out of trade talks at last moment, citing ‘unfair’ changes by U.S.

By Laura Osman

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

An RBC storefront sign with blue and gold lion-and-globe-logo, mounted on a dark building facade above a street in Toronto, as pedestrians pass by.
News

Canada’s Big Six shrug off the impacts of the trade war

By Chaimae Chouiekh

Briefing

Canadian contractors brace for retaliatory duties on U.S. nuts and bolts

By Joanna Smith   |   Aug 28, 2026

Blue Owl leads deal to lend Iren US$2.4B to buy equipment for B.C. data centre

By Claire Brownell   |   Aug 28, 2026

Rare earth firm Cyclic Materials raises US$75M for U.S. expansion

By Anita Balakrishnan   |   Aug 28, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Canadian investors are dumping U.S. government debt for American corporate bonds

By Chaimae Chouiekh   |   Aug 24, 2026
An image of tall buildings against a cloudy blue sky.
News

Canada pulls out of trade talks at last moment, citing ‘unfair’ changes by U.S.

By Laura Osman   |   Aug 22, 2026
A shot from the bottom of a flight of red brick stairs of Dominic LeBlanc emerging from a building, with Janice Charette and Mark Wiseman in single file behind him.
News

How Mark Carney plans to wage trade war against the United States

By Laura Osman and Murad Hemmadi   |   Aug 22, 2026
A head-on shot of Mark Carney at a lectern embossed with a maple leaf carved from wood. There is a row of Canadian flags behind him, and he's looking at the camera with a serious expression.
News

Canadian universities are still struggling to commercialize their research, new data shows

By Catherine McIntyre   |   Aug 25, 2026
Exterior of a University of Toronto building
Commentary

Carmichael: America’s wobbly bonds are Canada’s advantage in the trade war. Here’s why

By Kevin Carmichael   |   Aug 24, 2026
A photo of Mark Carney on his way into a news conference, trailed by Dominic LeBlanc. There is a row of Canadian flags on stands behind the lectern Carney is approaching.
News

Thomson Reuters launches its own AI model to reduce reliance on big tech

By Anita Balakrishnan   |   Aug 24, 2026

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account