Canada’s semiconductor industry received a boost this week as the Honourable François‑Philippe Champagne, Minister of Innovation, Science and Industry, announced the Semiconductor Challenge Callout, which provides C$150 million through the Strategic Innovation Fund to build Canada’s strengths in the design and manufacture of semiconductors.
The Semiconductor Challenge Callout looks for ambitious, large-scale ideas from industry and other ecosystem players that address how Canada can build on existing R&D and manufacturing strength, contribute to a national network and supply chain and position Canada as a critical global supplier of specialized semiconductors manufacturing. It focuses on products such as sensor and microelectromechanical systems (MEMS) used in everything from video game controllers to automobiles and telecommunications, compound semiconductors that provide power, speed and durability advantages over traditional silicon mass-market components, and advanced packaging to place multiple semiconductor devices in a single unit to improved connectivity and reduce power consumption.
“I know that people at home may question and say, ‘What is $150 million in the great scheme of the production of semiconductors?’,” Champagne said. “But let me remind Canadians that we have a niche capability when it comes to manufacturing. And we have a total ecosystem in Canada of innovators, of entrepreneurs. So this is about consolidating, expanding, scaling what we do best here in Canada.”
Champagne also announced a further C$90 million investment in the National Research Council of Canada’s Canadian Photonics Fabrication Centre (CPFC), which will finance equipment upgrades to increase the centre’s capacity and ability to address the ever-increasing complexity of the technology being brought to market by its clients. The CPFC is the only compound semiconductor foundry in North America that is publicly operated and open to all for use. It delivers photonics device fabrication services to the research and private sectors, helping to grow many Canadian small and medium-sized enterprises in such industries as telecommunications, environmental sensing, automotive, defence and aerospace.
“This $90 million is very much needed; we saw some pieces of equipment that are going to be coming to keep making sure we were state of the art,” Champagne observed. “Because over the last two decades, this center has established itself as a world-class one-stop-shop. People come here, they do research, they do production, proof of concept. And this makes us unique around the world. This investment will help position Canada as a critical global supplier of niche semiconductor technologies. And that’s where I think we can make a difference as Canada.”
The centre is a public asset that allows companies to work on projects, receive support bringing the product to market, and sometimes also receive support once in the market, noted Iain Stewart, president, National Research Council of Canada (NRC), in thanking the government for the funding. “CPFC is a hub, as the minister explained,” he said. “We do advanced research, we do pilot scale manufacturing. We are the only pure-play compound semiconductor fabrication center in North America. It’s special. And it has a long tail that goes all the way back to Nortel. And in fact, some of the stuff we’re blessed to have and some of our colleagues we’re blessed to work with go all the way back to Nortel. We are a unique supplier.”
Hamid Arabzadeh, chairman, president and chief executive officer of Canadian photonics firm Ranovus, which has had a long-time partnership with the NRC, added his thanks and that of the Canadian innovators in the semiconductor and the compound semiconductor industry.
“Today’s announcement sends a clear message to that talent that the Government of Canada understands the importance of intellectual property and global leadership in strategic industries,” he said. “My hope is that the Canadian talent will create new Canadian-owned companies and get Canada back to the podium. To that effect, we’re announcing a $45 million investment in the next generation of optical communication technologies to address the emerging AI and machine learning workloads. We recognize that an ecosystem is more than one company and look forward to continuing our work with other Canadian companies to strengthen the critical mass of intellectual property in Canada.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
