News丨U.S.-Canada tariffs force Canada’s semiconductor industry to cooperate across borders
News丨U.S.-Canada tariffs force Canada’s semiconductor industry to cooperate across borders
US-Canada tariffs force Canadian semiconductor industry to cooperate across borders
The United States recently raised tariffs on Canadian goods significantly, from 25% to 35%. The reason is that Canada has failed to prevent fentanyl from flowing into the United States. Canadian Prime Minister Carney criticized the United States for “loving tariffs too much” and said that it would protect its own interests.
This has a great impact on Canada’s semiconductor industry (the industry that produces chips and chip-related products). In order to cope with the risks in the US market, Canadian companies are accelerating their search for partners outside the United States.
IBM and Canadian Deca are working together to build an important new production line at a factory in Quebec. This line can assemble AI chips (key components of artificial intelligence chips) in a cheaper way, and is scheduled to start construction in 2026. IBM said this can reduce its dependence on the Asian supply chain.
Taiwan’s Winbond Electronics is considering opening a factory in Canada. They are attracted by Canada’s advantage of being able to attract and retain international scientific and technological talents more easily, as well as tax benefits. This can help them reduce their dependence on the Asian market.
Canadian companies are also actively discussing cooperation with companies in Europe and Southeast Asia to transfer some of the orders originally sold to the United States to these new markets.
Some analysts pointed out that although the high tariffs of the United States have hit traditional trade, they have unexpectedly promoted Canada to develop higher-end and more valuable semiconductor technologies. The factory in Quebec has been upgraded in recent years and has become an important base for chip assembly in North America. The boss of Winbond Electronics said more directly: “The US tariff policy has created new opportunities. For example, the United States wants to move medical equipment and defense industries back, which happens to be an area where Canadian companies can enter.”
Canadian Prime Minister Carney said “We must improve domestic strength and protect workers and companies.” Now, Canada’s semiconductor industry is working in this direction, trying to find a new way out under pressure.
The United States recently raised tariffs on Canadian goods significantly, from 25% to 35%. The reason is that Canada has failed to prevent fentanyl from flowing into the United States. Canadian Prime Minister Carney criticized the United States for “loving tariffs too much” and said that it would protect its own interests.
This has a great impact on Canada’s semiconductor industry (the industry that produces chips and chip-related products). In order to cope with the risks in the US market, Canadian companies are accelerating their search for partners outside the United States.
IBM and Canadian Deca are working together to build an important new production line at a factory in Quebec. This line can assemble AI chips (key components of artificial intelligence chips) in a cheaper way, and is scheduled to start construction in 2026. IBM said this can reduce its dependence on the Asian supply chain.
Taiwan’s Winbond Electronics is considering opening a factory in Canada. They are attracted by Canada’s advantage of being able to attract and retain international scientific and technological talents more easily, as well as tax benefits. This can help them reduce their dependence on the Asian market.
Canadian companies are also actively discussing cooperation with companies in Europe and Southeast Asia to transfer some of the orders originally sold to the United States to these new markets.
Some analysts pointed out that although the high tariffs of the United States have hit traditional trade, they have unexpectedly promoted Canada to develop higher-end and more valuable semiconductor technologies. The factory in Quebec has been upgraded in recent years and has become an important base for chip assembly in North America. The boss of Winbond Electronics said more directly: “The US tariff policy has created new opportunities. For example, the United States wants to move medical equipment and defense industries back, which happens to be an area where Canadian companies can enter.”
Canadian Prime Minister Carney said “We must improve domestic strength and protect workers and companies.” Now, Canada’s semiconductor industry is working in this direction, trying to find a new way out under pressure.