NEC Exits Quantum Hardware Race

NEC has reportedly ceased its quantum hardware development efforts, concluding nearly three decades of research into superconducting circuits and qubit technology. The company is expected to pivot towards exploring quantum applications, a strategic move that sidesteps the significant costs associated with building physical quantum computers. This decision has led several NEC quantum researchers, including senior figures, to reportedly join competitor Fujitsu to continue their work in the field.

NEC's legacy in technology includes a period of dominance in the semiconductor industry, where it held the top global sales ranking in 1990. Its breakthrough in superconducting qubits in 1999, producing one of the earliest known solid-state qubits, remains influential in quantum computing advancements. Unlike NEC, companies such as IBM have remained committed to quantum hardware development.

This withdrawal from hardware development is part of a longer, gradual restructuring process for NEC, which previously exited DRAM operations in 1999 and spun off its remaining chip units in 2002, forming Renesas Electronics. NEC's current business portfolio is diversified across IT services, defense, and telecommunications infrastructure, with quantum hardware development apparently not aligning with its present corporate focus. While NEC has not announced a complete withdrawal from quantum computing research, it continues to assess commercialization paths for quantum technology. Meanwhile, Fujitsu has advanced its quantum computing initiatives, launching a 256-qubit system last year and aiming for larger systems in the future.