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NEC halts quantum computer development, keeps research alive

NEC Corp. has stopped work on a practical quantum computer, citing a decade-long investment horizon and weak commercial prospects, while pledging to continue related research.

NEC Corp. announced it is withdrawing from the development of a commercial quantum computer after concluding that the project would need over a decade of additional investment and would be difficult to turn into a profitable product. The move underscores Japan's lag in the global quantum race, where the United States and China are accelerating funding and development. NEC, which created the world’s first superconducting qubit in 1999, has only produced an eight-qubit system, while competitors abroad operate machines with several hundred qubits.

Despite the setback, NEC will keep its quantum research activities ongoing. Within Japan, Fujitsu Ltd. leads in superconducting and diamond-spin quantum research, recently unveiling a diamond-spin prototype, and Hitachi Ltd. is exploring silicon-based quantum chips. The Japanese government, under Prime Minister Sanae Takaichi, has earmarked more than 10 trillion yen for quantum technology by fiscal 2040, though this remains modest compared with U.S. and Chinese spending.

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