# Strategy Paper Urges Canada to Add Semiconductors to AI Strategy > Source: > Published: 2026-09-08 19:00:00+00:00 Canada’s Semiconductor Council (CSC) is calling on the country’s federal government to make semiconductors an explicit pillar of its recently announced AI strategy. In a position paper, CSC argues that ambitions for sovereign AI cannot be achieved without a stronger domestic semiconductor foundation. Paul Slaby, CSC managing director, said Canada’s “AI for All” strategy correctly identifies dependence on foreign chip manufacturing as a strategic vulnerability, but it stops short of treating semiconductors as a formal policy priority. “Sovereign AI requires sovereign silicon,” he said in an interview with EE Times. He said the strategy is incomplete without a reinforced semiconductor foundation, but rather than seek new major spending programs, the CSC policy paper wants companies to have better access to existing funding and procurement mechanisms already tied to AI development. “The funding vehicles already exist,” Slaby said. “It’s about letting Canadian industry plug into them.” [View All](https://www.eetimes.com/category/sponsored-content/) Among them are the AI Compute Access Fund, the BDC LIFT Fund, and the Canadian Tech Growth Fund. Slaby said this access should focus on areas where Canada already has strengths, including photonics, compound semiconductors, chip design, and advanced packaging. More notably, CSC explicitly rejects the idea that Canada should try to compete directly with the world’s largest semiconductor manufacturers. “This is not a call to rival Nvidia or the frontier model race,” Slaby said, adding that Canada’s advantage is brain power, not cash outlay. Procurement is a central theme of the CSC position paper; it notes Canada’s AI strategy envisions substantial growth in sovereign compute capacity, creating demand for hardware worth billions of dollars. The council argues that spending should be used to strengthen domestic capabilities whenever feasible. Slaby said there’s an opportunity to put more Canadian semiconductor content into sovereign cloud infrastructure and strengthen the parts of the semiconductor value chain where the country already has world-class expertise and existing assets. Among those are Canadian Photonics Fabrication Centre (CPFC), [which was recently spun off](https://www.eetimes.com/canada-spins-off-photonics-lab/) from the National Research Council in Ottawa, advanced packaging capabilities in Bromont, Quebec, and a growing ecosystem of chip design companies. The CSC paper also notes that Canadian optical interconnect technologies are already incorporated into products shipped by global firms including Nvidia and AMD. Slaby said CSC is promoting a “build, partner, and buy,” message, which is also in line with the [Canadian government’s Defense Industrial Strategy](https://www.eetimes.com/defense-dollars-drive-canadian-dual-use-development/) (DIS). He said this means building domestic capability where Canada is strong, partnering with trusted allies where necessary, and buying what cannot be built domestically. He added that sovereign compute investments should be used to strengthen Canadian semiconductor capabilities throughout the technology stack. Slaby highlighted the [FABrIC program](https://www.eetimes.com/canada-focuses-funding-on-photonics-and-quantum/) as one that should continue to receive support from the federal government. Managed by CMC Microsystems, it was established to provide financial and technical resources, mentorship, and training for semiconductor businesses, engineers, and scientists in Canada to help them commercialize their technologies. It aligns with CSC’s view that Canada should focus on its strengths. FABrIC provides resources to help create new manufacturing processes for compound semiconductors, quantum technologies, photonics, and microelectromechanical systems. In a news release, CMC said Canada’s AI strategy reflects priorities many organizations across the ecosystem have been advancing for years. “We are encouraged to see a national framework that supports applied innovation and creates the conditions needed for AI adoption at scale,” CMC president and CEO Gordon Harling said in the statement. The news release noted that FABrIC’s focus on advancing domestic capabilities in semiconductor design and manufacturing aligns well with the AI strategy by supporting the development of advanced semiconductor and intelligent system technologies, enabling AI‑ready hardware and edge intelligent products that strengthen domestic capability, and supporting made‑in‑Canada innovation. FABrIC also has a significant training and upskilling component to develop highly qualified personnel through access to advanced tools, infrastructure, and experiential learning, supporting workforce readiness for AI‑enabled systems and advanced computing. Slaby sees training as particularly important and said the CSC wants semiconductor skills to be recognized within federal talent programs. Talent is one of Canada’s biggest advantages, he said, and the country must continue training and retaining semiconductor talent domestically. In the meantime, CSC is continuing efforts to build relationships internationally. It recently wrapped up trade mission of Canadian companies to the U.K., including London and Southampton, with a delegation attending the [TechWorks Semiconductors to Systems Summit 2026](https://www.eetimes.com/techworks-aligns-u-k-semiconductors-under-uksia-umbrella/) in London at the end of August. ##### Also read: [NVMe 2.4 Update Adds Post-Quantum Security, Power Controls](https://www.eetimes.com/nvme-2-4-update-adds-post-quantum-security-power-controls/) [Synopsys Updates CXL IP Portfolio for AI-Era Infrastructure](https://www.eetimes.com/synopsys-updates-cxl-ip-portfolio-for-ai-era-infrastructure/) [Marvell Targets AI Bottlenecks with Memory-Disaggregation Portfolio](https://www.eetimes.com/marvell-targets-ai-bottlenecks-with-memory-disaggregation-portfolio/) [Samsung Lays Out AI Memory Roadmap](https://www.eetimes.com/samsung-lays-out-ai-memory-roadmap/)