CMC Microsystems pitches academic and industrial merits of National Design Network

Targetting ISED for base funding

CMC Microsystems is raising the possibility of extending its suite of services to industry to obtain greater leverage for investments in academic-based microsystems research through its core National Design Network (NDN). The recommendation is included in a pre-Budget brief to the Finance standing committee and has been raised in discussions with officials at the Department of Innovation, Science and Economic Development (ISED) as the Kingston-based organization seeks new funding sources.

The pre-Budget brief requests approximately $60 million over five years to continue supporting researchers utilizing the NDN and a further $20 million over five years to support commercialization through to the product demonstration stage by increasing "the use of NDN by companies, with preferential arrangements for small- and medium-sized enterprises and start-ups". The preference is on stable A-base funding which CMC never enjoyed under the Natural Sciences and Engineering Research Council (NSERC).

CMC is also seeking $45 million in infrastructure funding from the Canada Foundation for Innovation to launch the Prototyping for Advanced Micro/Nano Systems Leading to Next Generation Manufacturing (PAMM) program. It recently received $20 million in CFI funds to manage the Advanced Design Leading to Manufacturing in Micro-Nano Technologies (ADEPT) program.

Early this year, NSERC — CMC's long-time CMC funding partner — announced that it was phasing out support for CMC over a three-year period, providing $8 million in 2016-17, $4 million in 2017-18 and $2 million in 2018-19 (R$, January 26/16). If new funding sources are not secured by the next federal Budget, CMC, which was established in 1984, will switch into an "orderly shutdown" mode, according to CMC president Dr Ian McWalter.

"Right now we can have a pretty normal 2017-18 but there are thousands of projects planned for the next two years. If there's no further funding, an orderly shutdown will be made," says McWalter. "There's a new government and the Innovation Agenda is just starting to take shape (and) there are proponents (at ISED) who really get this and think it's important … We need to stand out and the brief intends to achieve this."

CMC has long contended that support for research and skills training in the micro-nano technologies underpinning advanced manufacturing are key to maintaining and enhancing Canada's productivity and competitiveness. (See McWalter's September 8/15 Opinion Leader column).

Risks and Opportunities

This view is reinforced by the recently released 2016 Global Manufacturing Competitiveness Index by Deloitte Touche Tohmatsu Ltd and the US Council on Competitiveness. The index, which builds on two previous studies from 2010 and 2013, says two "regional clusters of strength" have emerged in Asia Pacific and North America with talent, cost competitiveness, productivity and supplier networks cited as the top-ranked drivers of competitiveness.

"Canada is projected to drop from 9th to 10th in Global Manufacturing Competitiveness by 2020, if the current trajectory continues. There is an opportunity to reverse this trend. The NDN addresses this challenge by making accessible to industry and academe otherwise unavailable micro-scale and nano-scale technologies, and related facilities and tools, to create the next wave of advanced technologies." — CMC Microsystems pre-Budget brief to Finance Standing Committee.

"There are five nations in south-east Asia that are strong in advanced manufacturing and China is now number one globally in terms of manufacturing competitiveness. But the US will become number one by 2020 due largely to billions in investments in advanced manufacturing innovation centres," says McWalter. "Mexico is also up there while Canada is gently drifting back. But a NAFTA cluster could be stronger than Asia."

The CMC Finance brief outlines a series of risks and opportunities associated with Canada's pursuit of advanced manufacturing expertise and commercial output.

On the opportunity side, micro-nano-technologies are becoming ubiquitous and are "finding their way into all vital sectors of the economy". Associated manufacturing processes are key to commercializing product designs that are currently impossible. CMC's NDN is key to building the necessary capacity in research expertise and skills training, helping to overcome barriers in access to R&D and affordability.

On the risk side, Canada could see a decline in its advanced manufacturing sector if new CMC funding is not secured at a time when micro-nanotechnologies are poised to deliver an increasing proportion of product value. If this occurs, Canada's ability to participate in global supply channels will be reduced, company recruitment will become more difficult and opportunities stemming from 30 years of investment in CMC activities could be squandered.

The Deloitte index also outlines Canada's strengths and weaknesses in advanced manufacturing. The country benefits from an established manufacturing industry, an efficient regulatory environment, a flexible labour environment, proximity to the US, participation in NAFTA, strong government support and abundant natural resources. Challenges include a shortage of skilled labour and declining oil prices and capital investments.

CMC offers universities five key services: microsystems design tools and methods; fabrication services to create prototypes; equipment and services for product testing; microsystems training and support services; and, network management and mentoring.

Evolving relationship with industry

CMC's status as an honest broker has historically precluded industry from directly participating in research projects. That could change if the government embraces CMC's new function by extending the use of NDN to companies.

"Our task is to shape our argument for Finance to prepare for the 2017 Budget," says McWalter. "CMC's output numbers are pretty large. Business R&D and staffing are dropping in Canada but CMC graduates are stable and rising, with 2,800 over five years and 700 just last year. They're going up. ISED understands that these skills are important. Canada is a great place to do research."

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