Canada's Semiconductor Council asks the federal government to add a hardware pillar to the national AI strategy, arguing sovereign AI needs sovereign silicon.
An industry group has asked the federal government to add a seventh pillar to Canada's national AI strategy – one focused on semiconductors.
The Canada's Semiconductor Council (CSC), which represents nearly 60 domestic chip companies, submitted a position paper to the government titled "Sovereign AI Needs Sovereign Silicon." The paper praises the existing AI strategy but argues it misses a critical piece: the hardware layer.
"What's missing is that recognition that AI is built on hardware infrastructure, and what's underpinning everything there is semiconductors," CSC managing director Paul Slaby told BetaKit.
Slaby said the government's position that "no sovereign AI without sovereign compute" is correct. "But what we want to say is 'there's no solving compute without a domestic capability in semiconductors,'" he added.
The paper proposes that a dedicated semiconductor pillar would give the industry "a clear place to plug in" to the strategy without requiring new funding programs. It would work by setting targets and directing procurement and capital.
Slaby said the position paper has already received a "very positive response" from the deputy minister of AI, Mark Schaan. He hopes that opens a door for discussions he is feeling optimistic about.
Canada is building out sovereign compute capability with data centres on home soil. Those facilities tend to run on foreign-made chips, the CSC noted.
The position paper puts forward five specific asks. Two of them: a Canadian-content plan for the sovereign compute buildout, and hardware on-ramps for some programs already established in the AI strategy. Another asks for semiconductor talent to be added to the strategy's AI workforce policies.
Industry leaders, including the CSC, have long pressed the government for a standalone national semiconductor strategy. AI Minister Evan Solomon told BetaKit in May that he is not pursuing one. Folding semiconductors into the existing AI strategy may be the next best option.
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