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Quebec's strategy for closing America's semiconductor talent gap

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Credit: Organization

The existing competitive edge has prompted the birth of a semiconductor Innovation Zone in the city of Bromont, located in Quebec, Canada. World leaders like IBM, Teledyne DALSA, Fabritec, and GE Aviation are located in the area, taking advantage of Quebec's green energy.

The Innovation Zone is strategically located in the North American semiconductor North-East Corridor and has the highest number of microelectronics jobs and clean rooms in the country. The North-East Corridor links Quebec with the U.S. semiconductor industry, which is booming thanks to the CHIPS Act. More than 60 new semiconductor projects have been announced in the U.S., including 23 new chip fabs and the expansion of 9 other fabs, many of them in New York State. This makes Quebec part of a cross-border supply chain, covering everything from chip design to R&D and manufacturing.

The American semiconductor industry is facing a labor market gap, as the projected demand for talent is growing. Demand for engineers, technicians, and computer scientists is particularly expected to increase. Quebec is taking the lead in developing and implementing solutions to this challenge, building on its historic strengths while demonstrating agility in response to regional CHIPS investments. Incentives and international mobility programs have been created to attract top talent. At the federal level, companies can already benefit from the Intra-Company Transfer program, which allows for the temporary transfer of qualified employees from abroad to Canada within the same organization. Another immigration program, the Global Talent Stream, makes it easier to hire specialized or highly skilled talent from abroad. This program includes a simplified procedure in Quebec for high-demand skills within the province.

There are also several Quebec-specific incentives aimed at talent development and attraction. Companies can benefit from programs provided by Employment Quebec, which offer competitive grants for training. In strategic sectors—such as digital transformation, the green economy, or the energy transition—the grants can cover up to CAD1 million of eligible expenses. Additionally, tax credits are available to help recruit foreign researchers for scientific research or experimental development (SR&ED) projects in Quebec.

To further attract talent, the Quebec Perspective Scholarship Program, announced in 2021, is a CA$1.7 billion investment over five years to encourage Canadian or permanent resident students to pursue diplomas in strategic economic sectors such as engineering and information technology. Another strong incentive is the Quebec tax holiday for researchers and specialists recruited to work in the province. This holiday provides an exemption from Quebec income tax for five consecutive calendar years, including a full exemption for the first two years.

Investissement Quebec, the Quebec government's financial arm and economic development agency, has established its own Talent team, whose mandate is to work closely with companies already in Quebec or those looking to establish a presence, helping to build resilience against workforce challenges.

All levels of government work closely with businesses to adapt existing training programs and create new ones that target priority sectors. A great example is the swift action taken to support the large battery projects recently established in Quebec. Several partner organizations across the province collaborated on these structural changes and actively promoted them to attract both local and international students and talent.

In addition to responsive policies, Quebec offers several lifestyle advantages. The region is one of the safest in North America, providing an outstanding quality of life, affordable housing, and competitive childcare. In 2020, the monthly childcare cost for an infant was just CA$181. Companies in Quebec also benefit from significantly lower labor costs compared to those in the U.S.

Investissement Quebec offers 360-degree support for business growth and productivity. Its services range from financing to technological support and business consulting. To learn more about what the Quebec semiconductor ecosystem can bring to your business contact Rachel Yin (LinkedIn) Info@Invest-Quebec.com