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Semiconductor and related engineering services

In 1997, Canada's electronic components industry produced over US$4.75 billion worth of goods and services. The industry is research-focused and develops products primarily for export markets. Approximately 300 firms, including Nortel, IBM, Mitel, C-MAC, Celestica and Circo Craft make up the Canadian electronic components industry. There are 50 companies in Canada engaged in the design, packaging, and fabrication of semiconductors and related engineering services. These companies can be divided into three tiers: a few large companies, several medium-sized businesses, and many small companies. There are three large-scale Canadian chip manufacturers - Nortel Semiconductors, Mitel Semiconductor and Gennum Corporation. Nortel and Mitel each produce approximately US$350 million of ICs annually. Genum produces approximately US$70 million of ICs annually. The second tier is made up of firms with annual revenues in excess of $25 million and includes companies such as Dalsa, Mosaid, JDS Uniphase, and PMC-Sierra. The third tier, made up of small entrepreneurial firms such as Genesis, Miranda, and Tectrol, tends to service niche markets.