.png)
We sat down with Benjamin Bergen on Free Lunch by The Peak to dive into why we’ve been hearing so much about semiconductors, and the role Canada could play in the supply chain.
Why do we keep hearing about semiconductors?
“Semiconductors are essential for everything from consumer goods to defence technology, so they’re critical. The most advanced chips are made in Taiwan and South Korea, and as the geopolitical situation has shifted to become more unpredictable with China, what was once considered a reasonably safe supply chain has been disrupted. What's happening now is an expedited effort to begin near-shoring that capacity, especially in North America.”
Why hasn’t Canada played a big role in this industry?
“Having the government take a hands-on approach to building an industrial strategy around semiconductors has kind of been the missing agent. A lot of our chip manufacturing capacity is owned by foreign firms, but if you actually want to build prosperity, you've got to own the intellectual property. If you look at Canada’s AI strategy, it’s largely failed because the investments didn't protect any IP, leaving taxpayers subsidizing foreign firms like Meta.”
So, where is Canada’s biggest opportunity?
“If we think about chips, there are three areas: Design, fabrication, and packaging. I think we have an opportunity in the design space since that won’t require spending billions of dollars on a fabrication plant (you can then plug into one). The other is packaging. Overall, if we double down on this space, we can not only create a role for us in the supply chain but good-paying jobs at firms headquartered in Canada, that generate prosperity for Canadians.”
This interview has been edited for clarity and length. You can listen to the episode here, or search "Free Lunch by The Peak" wherever you listen to podcasts.