New report recommends Canada form government-led consortium of semiconductor buyers

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TORONTO — A new report from Canada’s Semiconductor Council says the country needs to form a government-led consortium of chipbuyers by 2025 to overcome a global shortage crippling manufacturers and prevent further troubles.

The report based on input from 100 business leaders, chipmakers and investors says a consortium making high volume purchases of semiconductors would give the country more negotiating power with international suppliers.

The consortium is one of 20 recommendations in the report aimed at helping the country address a chip shortage that is expected to take years to clear.

The shortage has been triggered by soaring demand for products made with chips, factory closures caused by COVID-19, a fire at a Japanese semiconductor plant and a cold snap that shut down another facility in Texas.

Aside from a consortium, the council also wants to see domestic production of semiconductors increased and the development of more onshore manufacturing, which it believes will boost the economy.

The council recommends the country start looking at onshoring by researching which semiconductors have the most demand, establishing business models to fabricate those chips and then attracting multinational partnerships and engineering talent.

 

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