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

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

Andrew Forde, wearing a beige tweed blazer, black slacks and a white sweater, speaks on a stage at the Elevate conference in Toronto with three large blue screens in the backdrop. One screen displays the session topic, AI, another displays the logos for sponsors KPMG and Google, and a third screen depicts a photo of a stop sign covered in stickers. The stop-sign photo is labelled, “Stickers that beat supercomputers.”
News

KPMG’s AI whisperer says some Bay Street firms are falling into a productivity trap

By Anita Balakrishnan
The Big Read

ApplyBoard faces a reckoning as Canada’s immigration boom turns into a bust

By Claire Brownell and David Reevely
A shot of Anthony Hu in a semi-dark office, with his face illuminated by two computer screens.
The Big Read

Anthropic’s Mythos cracked software open like an egg. It’s just the beginning

By David Reevely
Susan Hawkins, chief executive officer of Payments Canada gestures with her hands as she speaks on stage in front of black screen at the Payments Canada Summit in Toronto.
Exclusive

Not all banks and fintechs will get access to the Real-Time Rail at launch

By Claire Brownell

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: If an AI jobs apocalypse is coming, we’re not seeing it in the data

By Kevin Carmichael

Briefing

Anthropic says world needs option to slow AI development, as models learn to self-improve

By Murad Hemmadi   |   Jun 5, 2026

Ottawa taps the brakes on efforts to speed up project permitting

By Laura Osman   |   Jun 5, 2026

Kevin O’Leary scales back Wonder Valley Utah plans after objections from a key state legislator

By David Reevely   |   Jun 5, 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

Canada’s surprise plan to buy Saab command jets leaves competitors seeking answers

By David Reevely   |   May 29, 2026
A closeup of a scale model of a jet covered in pixellated camouflage, with sensor equipment attached to the top of its fuselage. There are civilians and uniformed military personnel milling in the background.
Exclusive

Canada awards Ford $464M to make F-Series trucks in Ontario

By Murad Hemmadi, Anita Balakrishnan and Joanna Smith   |   May 7, 2026
Blurred red, white and black cars zoom down a street in front of Ford’s Oakville, Ont., assembly plant on Friday April 5, 2024.
News

European and Asian firms want a stake in Canada’s photonics factory, Joly says

By Murad Hemmadi   |   May 7, 2026
The Big Read

ApplyBoard faces a reckoning as Canada’s immigration boom turns into a bust

By Claire Brownell and David Reevely   |   May 27, 2026
Exclusive

RBC Insurance chief to depart in shakeup of key strategic role

By Chaimae Chouiekh and Anita Balakrishnan   |   May 27, 2026
Low-angle view of an RBC logo sign in front of a tall glass-and-concrete office tower, with surrounding skyscrapers visible in the background.
Exclusive

Shopify makes cuts to its operations team in latest round of layoffs

By Aleksandra Sagan   |   May 4, 2026
Tobias Lutke in a black shirt and grey jeans sitting on a couch, gesturing with both hands pinching the air as he speaks

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