NEC Ends Quantum Hardware Development Over Commercialization Concerns
NEC has discontinued its quantum computer hardware development, concluding an endeavor that began with one of the field’s earliest qubit demonstrations. The company ceased physical quantum system development at the end of March, as reported by Nikkei Asia, due to concerns that commercialization would take too long to become profitable. NEC is not entirely abandoning quantum work, just retreating from one specific approach.
NEC’s Quantum Focus Shift
According to a report by Nikkei Asia, NEC has halted the development of its physical quantum computing system. The company determined that bringing the hardware to market would not yield an adequate return within an acceptable timeframe.
NEC will continue its work in quantum annealing, a method used to find efficient solutions for problems with numerous possible combinations, such as delivery routing or scheduling. The company also plans to expand its quantum-inspired services. These services operate on conventional computers and simulate certain problem-solving techniques associated with quantum machines. They do not require quantum hardware and utilize existing infrastructure, which means they are not quantum computers themselves.
A Legacy and a Prototype
NEC has a significant history in this field. In 1999, its researchers were the first to demonstrate a functional superconducting solid-state qubit, which is the fundamental unit for many quantum computers. This was a notable achievement, predating most of today’s hardware companies.
More recently, NEC pursued annealing hardware in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology. In 2023, NEC and Tohoku University initiated joint research on an eight-qubit annealing machine, employing superconducting technology and an architecture from Austria’s ParityQC. This prototype was described as Japan’s first domestically produced annealing machine accessible to external researchers via the internet.
An eight-qubit device is primarily for research and not suitable for practical computation. Practical systems would require significantly more qubits, along with advancements in control, reliability, and manufacturing. The prototype never reached commercial application.
NEC’s decision reduces the number of large Japanese firms developing quantum hardware. In contrast, Fujitsu continues to expand its hardware research, and in August, announced a partnership with Monash University and Australia’s CSIRO focused on quantum research and commercialization efforts.
Overall, a company that played a role in the early days of superconducting quantum computing is now stepping away from hardware development, concluding that the timeline did not justify the investment. What NEC retains, annealing and classical simulations, falls short of a general-purpose quantum computer, and the company has not disclosed the extent of its investment before withdrawing.