Hardware’s Second Act: What Canada Must Do Now
Insights from the Mila AI x Robotics Panel on Deep Tech, Sovereignty, and the Return of Hardware
We’re living through a hard pivot, literally.
For two decades, “hardware is hard” was startup gospel. It scared off founders. It scared off investors. It got buried under layers of software and SaaS multiples. But something’s changed. Hardware is having a second act. And this time, it might stick.
At the recent Mila AI x Robotics Panel, we dug into what’s driving this shift, why Canada is still behind, and what needs to happen now. Here’s a distillation of the discussion.
1. Why Hardware Momentum Is Building Again
Three things are colliding:
Global trade is fragmenting. Re-shoring isn’t optional anymore. Supply chain resilience is national strategy now.
Actuation tech is finally catching up. We’ve had 20 years of research; control systems are mature enough to build on.
AI adds flexibility. The software layer, especially with LLMs, means you can build adaptive, context-aware hardware with smaller teams.
If the first wave of IoT felt clunky, this next wave is starting to feel agile.
2. Manufacturing as Strategy, Not Just Output
We talked a lot about irrationality. Because re-shoring isn’t efficient, it’s protective.
You’re going to see countries duplicate manufacturing capacity for things they don’t even need, just to reduce dependency. That creates opportunity: the smart bet is on versatile, adaptable manufacturing hubs that can spin up across verticals.
But founders need to understand the new game:
Read the geopolitical tea leaves.
Build early bridges with new trading partners.
Government focus on “dual-use” is promising, but not everything can, or should, be dual-use.
3. Hardware Sovereignty Is About Optionality
I built a proudly “Made in Canada” product with PUSH. And the hard truth? Visibility into prototyping, design, and manufacturing support hasn’t improved much since then.
Hardware sovereignty isn’t about making everything at home. It’s about pivotability: being able to switch suppliers or fix bottlenecks without your entire business collapsing.
What we need:
A clear map for founders: prototyping hubs, design shops, shortlists of vendors.
Government-backed identification of critical supply chain gaps, and support to fix them domestically.
4. Fixing the Capital Stack for Hardware
Hardware takes time. It’s expensive. It’s messy. That means capital chains have to be longer and stronger.
What works:
Start simple. Nail consumer demand before asking for millions.
Early signs of pull matter way more than polish.
Canadian investors need to start taking real bets, not charity, but conviction. We need an Eclipse Ventures for Canada. Now.
Also:
Banks and government need to plug the working capital gap.
DARPA-style competitions and fast-lane procurement would go a long way.
5. What Would a Thriving Ecosystem Actually Look Like?
Here’s the vision:
A flagship consumer hardware company built and scaled from Canada.
High-tech, frictionless manufacturing hubs where a founder can get a quote in 24 hours and a prototype in a week.
Real FOMO. Like San Francisco. 30+ events a week, constant collisions. We need that grassroots movement here.
Final Thought: Build Like It’s Wartime
If we want to compete, we have to act like it matters. That means bold policy. Real infrastructure. A culture of experimentation. Canada doesn’t need to own every piece but we do need to own the ability to pivot.
This moment won’t come back.
Let’s not waste the second act.