York Region invests $1.5M in semiconductor, hardware manufacturing

Investment to help add 145 jobs throughout region

Newmarkettoday.ca
Jan. 31, 2022
Joseph Quigley

York Region is investing $1.5-million in a bid to expand hardware and semiconductor companies in the region.

The municipality announced it would expand its partnership with Markham-based ventureLAB, with $1.5 million going toward the ongoing Hardware Catalyst Initiative. The initiative -- also funded with $9.7 million through the Federal Economic Development Agency for Southern Ontario -- aims to help all sizes of hardware and semiconductor businesses start in York Region.

VentureLAB chief operating officer Matt Skynner said the funding will allow them to take more companies into the program, with an estimated 145 new jobs in York Region as a result.

“We believe there needs to be a hardware, semiconductor ecosystem in the region,” he said.

The initiative supports businesses in the sector, whether startups that need help testing products or larger companies aiming to expand. In addition to providing lab space for testing, it also has a capital investment program to help companies grow.

York Region Chairman and CEO Wayne Emmerson said it is a good move for the economy.

“We know supporting the growth of innovative companies is key to strengthening York Region’s economic vitality,” Emmerson said in a news release. “Our investment into the Hardware Catalyst Initiative will help ventureLAB expand its capabilities, attract top talent and jobs and continue to demonstrate that York Region is a global destination of choice for entrepreneurs and investors.”

The world has recently experienced a shortage of semiconductors, used to power technology, including vehicles and ventilators. Skynner said although the investment will not solve the global problem, there are long-term benefits to Canada investing in local manufacturing.

“If the companies do it for Canada, the decision on allocation of where chips go, and that sort of thing happens here,” he said. “Over time, that will help some of those challenges we had in the past in the supply chain.”

“The HCI is creating opportunities for Canada to be a global leader of semiconductor products, and we are proud to support Canadian businesses in this important sector,” said Helena Jaczek, minister responsible for the Federal Economic Development Agency for Southern Ontario, in a news release.

The 145 new jobs would likely be high-paid engineering for companies coming into the region, Skynner said. He added that figure does not include spinoff jobs, such as manufacturing and transportation.

Skynner said though some startups are based in Markham to use ventureLAB facilities, the businesses aided by the initiative move all over the region and go where they see fit.

He said it is an important investment for the whole region.

“We think it’s a win-win all around and will be a huge success."