The U.S. Department of Commerce will distribute $2 billion to domestic quantum firms to accelerate the construction of the next generation of supercomputers. Half of this will go to IBM, which, in addition to government support, will inject its own billion into a new company, Anderon, the first "pure quantum foundry" for the production of chip wafers. The programme runs under the CHIPS and Science Act, and the government will also take equity stakes in smaller players such as D-Wave Quantum and Rigetti Computing in return for part of the support.
Quantum computers promise major breakthroughs in healthcare, energy, finance or chemistry, but they also pose a serious risk to cybersecurity because they could one day break today's encryption standards. For now, we are still more in the "before the storm" phase: the technical hurdles are huge, qubits are extremely fragile and stable, and practical systems are still emerging. Yet IBM estimates that quantum technologies could create up to $850 billion in economic value by 2040, while McKinsey-type analyses speak of up to $1.3 trillion by 2035 for several key industries.
What exactly is the US funding and why
The Department of Commerce will make $2 billion available to support US quantum companies, with approximately $1 billion going to IBM $IBM. The money is to go mainly to research and development, building and expanding manufacturing capacity for quantum chips, and building an ecosystem around new infrastructure. The support is part of a broader strategy in which the US is trying to ensure that the majority of the world's quantum wafer production is made on US soil, similar to what is being done for the semiconductor portion of the CHIPS Act.
In addition to IBM, a total of nine quantum companies are set to benefit from the programme. For a select few of these companies, it will not just be grants, but equity-for-equity exchanges - so the government is directly participating in the future value of these companies. This model is unusual compared to traditional grants, but makes sense in an area where a single breakthrough can create enormous market value.
Anderon: IBM's first 'pure quantum foundry'
IBM will set up a new subsidiary, Anderon, to act as a pure quantum foundry to produce wafers for quantum chips. Around $1 billion of public funding will go directly to support the project, with IBM adding $1 billion of its own and expecting additional investors to step in. The aim is to create a manufacturing capability that will not only serve IBM itself, but also other companies over time, much as traditional TSMC-type foundries serve the broader semiconductor market.
IBM says the initiative is one of the US government's largest commitments to quantum research and manufacturing to date and is intended to ensure US dominance in quantum wafer production. The market reacted positively to the announcement, with IBM shares adding 12% in response to the news.
Quantum computers: huge potential and risks
Quantum computers use qubits, which can process information in a different way than the classic bits 0 and 1. This allows for incomparably higher computational speeds in certain types of tasks - typically simulating molecules and materials, optimising complex logistical and financial problems, or training certain types of models.
IBM estimates that quantum technologies could create up to $850 billion in economic value by 2040. The McKinsey study then links the greatest potential to four industries: automotive, chemicals, financial services and life sciences, where quantum computing could add up to $1.3 trillion in value by the middle of the next decade. These include:
Faster development of new materials and batteries in the automotive industry
more accurate simulations of chemical reactions and catalysts
more sophisticated risk and pricing models in banking
the design of new drugs and personalised medicine in pharmaceuticals
On the other hand, quantum breakthroughs pose a major threat to today's cyber security: a sufficiently advanced quantum computer could break much of the current encryption that underpins the internet, banking transactions and government communications. This is why the field of so-called post-quantum cryptography is developing in parallel to give the world new standards that are resistant to quantum attacks.
Why we are still "before quantum D-day"
Despite high expectations and media headlines, none of the big players have yet reached the point where quantum computers can be deployed en masse for routine tasks. The reasons are largely technical:
qubits are extremely sensitive to external influences such as temperature fluctuations, electromagnetic interference or light
maintaining their coherence long enough for complex computation is difficult
current systems suffer from high error rates and require sophisticated error correction algorithms
Therefore, the practical use of quantum computers has so far been in the form of experimental projects in collaboration between companies, universities and technology partners. IBM $IBM, Google $GOOG, Microsoft $MSFT and specialised startups are gradually increasing the number of qubits and the quality of systems, but a few more technical generations remain to achieve a "utility scale" quantum that stably solves real industrial tasks.
Smaller players: D-Wave $QBTS and Rigetti $RGTI as recipients of hundreds of millions
In addition to IBM, smaller pure-play quantum companies will also receive significant support. D-Wave Quantum has announced that it has signed a Letter of Intent with the Department of Commerce for up to $100 million in funding under the CHIPS and Science Act in exchange for an equity stake. The company called it "a pivotal moment not only for D-Wave, but for quantum computing and the United States," and its stock jumped by the low teens after the announcement.
Rigetti Computing signed a similar letter of intent, which also may receive up to $100 million and will issue a stake in the company to the state in exchange. According to the firm's chief executive Subodh Kulkarni, this will allow it to significantly accelerate the scaling of the technology and get closer to practically usable quantum computers that deliver real utility value to customers.
Geopolitics and implications for Europe and China
The US investment in quantum technology has clear geopolitical dimensions. The US is responding to the growing activities of China and the European Union, which are also building their own quantum programmes, research centres and specialised infrastructure.
For Europe, this means that it will have to decide whether to be content with being a 'user' of US and Chinese technology or to increase its own investment in order to maintain its technological sovereignty in this area as well. For China, the US move is a signal that quantum technologies are becoming the next front in technological rivalry, like semiconductors or 5G.
For global firms in automotive, chemicals, finance and pharmaceuticals, then, it is crucial to see how quickly quantum computing moves from the lab to the field. Those who can bring quantum algorithms to their R&D and data teams early on can gain a competitive advantage that will be hard to catch up with.