As a German chip software developer aims to claim a bigger slice of the $1-trillion semiconductor industry, the company is expanding its reach into Canada in an unlikely research and development hub — Saskatoon. Siemens Canada Ltd., a German subsidiary, develops design software to manufacture the tiny, complex microchips that are crucial components in phones, computers, cars and data centres. The tech giant plans to expand its workforce by a third at Saskatoon’s research and technology park. It’s the original home of a startup that was rolled into Siemens — and it has become a battleground in the war for control in the AI industry. Amit Gupta, who now leads Siemens’ electronic design automation as the chief AI strategy officer, was the founder of Saskatoon-based chip software startup Solido Design Automation Inc. Siemens acquired the business in 2017 for an undisclosed amount, providing much-needed capital to expand operations. It was speculated to be the biggest tech deal in Saskatchewan at that time. In the late 2010s, there were 50 people on staff. Now, the company plans to hire 100 workers in software development and customer-facing roles in the next two years to have a 400-strong workforce operating from Saskatoon’s Innovation Saskatchewan Research and Technology Park. “Siemens has the resources to be able to double down on that investment and hire more people,” said Gupta to the Financial Post. “As a result of that, we think we could take a larger part of that market share.” The company is already one of the three big players in semiconductor software, says Gupta. The company is partnered with American chip developer Nvidia Corp., and it has Alphabet Inc. and Microsoft Corp. on its roster of customers. Artificial intelligence, and the processing centres that power it, has resulted in a “huge boom,” Gupta said. Some estimates had suggested the semiconductor industry would be worth $1 trillion by 2030, but it hit that milestone four years early. Faisal Kazi, President and CEO of Siemens Canada, speaks during an announcement in Saskatoon on Wednesday. Michelle Berg / Saskatoon StarPhoenix Faisal Kazi, president and chief executive of Siemens Canada, now believes the market will hit $1.5 trillion by 2030. “What we are predicting is that this artificial intelligence that AI brings is going to go in everything we touch, and that can only happen through chips,” said Kazi. Social media behemoths and telecoms giants have plans to build out large-scale data centres across Canada, with recent announcements across the western provinces. Last week, Meta Platforms Inc. announced it will spend $13 billion building an AI-driven data centre north of Edmonton — the largest project of its kind in Canada. Goldman Sachs Group Inc. estimates that big tech giants could spend over US$5 trillion on AI infrastructure by 2030. Rapid development in AI is where Siemens sees an opening to catch up to its American competitors, Synopsys Inc. and Cadence Design Systems Inc. Gupta argues Siemens has an edge over its competitors because it uses AI-powered software, which can expedite the time to make advanced chips. “Almost every modern advanced chip is made with our software,” said Gupta. nyking@postmedia.com
Global software giant chooses Saskatoon as a battleground in the AI race
