(Ottawa) After the Windsor-Detroit corridor for the automobile, established over the past 60 years, another equally structuring corridor for the Canadian economy is about to open between Canada and the United States. United: that of semiconductors between Bromont and Albany, in the State of New York.
The Trudeau government should take advantage of the visit of US President Joe Biden to confirm that the IBM plant in Bromont will be used more to test and package semiconductors that will be manufactured in greater numbers in the United States. . This file is one of the many topics on the agenda of President Biden’s 24-hour visit, which will arrive in the country this Thursday evening.
Determined to reduce their dependence on China and to build a reliable and secure supply chain, Canada and the United States intend to establish close collaboration in the manufacture of these computer chips, which are essential for a large number of sectors and products, including cars, smart phones, household appliances and medical equipment.
The Minister of Innovation, Science and Industry, François-Philippe Champagne, will soon sign a letter of agreement with the IBM plant in Bromont aimed at increasing its testing and packaging capacities in forecast of strong semiconductor production in the United States, according to information obtained by La Presse.
In technology jargon, semiconductor packaging is a procedure of stacking multiple chips on top of each other or placing multiple of them side by side in a package so that they are connected and can act like a single piece of silicon.
In Albany, IBM has a world-class research center in this field, and the multinational announced last fall a US 20 billion investment in Poughkeepsie, in the Hudson Valley region, in a new factory for to manufacture and develop semiconductors, as well as to develop artificial intelligence and quantum computing.
“It is essential to fit strategically into major North American supply chains. We are preparing to put Bromont, Quebec and Canada at the heart of the semiconductor chain in North America. It’s very strategic for research and manufacturing in this sector,” said a government source familiar with the matter.
“We don’t have the capacity to do everything we necessarily want in the field of semiconductors, at the height of, for example, Intel, which has invested billions of dollars. But if you increase capacity in the area where you can strategically fit in, that changes everything,” the source said.
As soon as he took office, President Joe Biden announced his intention to repatriate the production of products deemed essential to the United States. Semiconductors are part of this strategic list. Last August, he signed a law, the CHIPS for America Act, which extends $52 billion in subsidies to restart the production of semiconductors in the United States.
Since then, industry giants have announced plans to produce more of these microchips in the United States. For example, earlier this year Intel undertook the construction of two semiconductor factories near the state capital of Ohio, Columbus – a $20 billion investment. Chip production is expected to start from 2025.
In recent months, Minister Champagne has raised the idea of establishing an Albany-Bromont corridor for semiconductors, inspired by the automotive corridor between Canada and the United States. He proposed the idea to Prime Minister Justin Trudeau and the latter made it a priority. During the most recent Three Amigos summit in Mexico earlier this year, Mr. Trudeau raised the possibility with the President of the United States with a view to building a resilient supply chain on the continent. North American.
Reached by La Presse on Thursday, Mr. Champagne said he was continuing his efforts to consolidate the supply chain in North America and said an announcement is imminent.
“I have been proposing to create a new 21st century semiconductor corridor for several months. I spoke about it with the Secretary of Commerce in the United States [Gina Raimondo]. The Prime Minister spoke about it at the Three Amigos summit. It took a life of its own,” Champagne said.
According to the director general of the Institute of electronic systems of Quebec (ISEQ), Marie-Hélène Lamarre, this announcement expected during the visit of President Biden is of capital importance.
“Semiconductors are the equivalent of baking flour. This is essential. The United States is investing heavily in this sector. This was discussed during the Three Amigos Summit. It is an incredible opportunity to participate in this new economy,” said Ms. Lamarre.
“It’s very important that Canada be part of the supply chain,” added Ms. Lamarre, whose nonprofit represents Quebec’s electronics industry cluster.
