The quantum computing market could be worth up to $5 billion by 2025, driven by competition between the US and China, according to GlobalData. The leading data and analytics company notes that China is currently about five years behind the US, and the recently passed US CHIPS and Science Act will enhance US quantum capabilities while hindering China.
The US CHIPS and Science Act, signed into law in August 2022, represents an escalation in the growing tech war between the US and China. The act includes measures designed to cut off China’s access to US-made technology. In addition, new export restrictions were announced on October 10, some of which took immediate effect. These restrictions prevent the export of semiconductors manufactured using US equipment to China. Currently, the US is negotiating with allied nations to implement similar restrictions. Included in the CHIPS Act is a detailed package of domestic funding to support US quantum computing initiatives, including discovery, infrastructure, and workforce.
Quantum computing patents dominated by the US
According to GlobalData’s Patent Analytics Database, US tech firms are leading innovators in quantum computing. IBM, Alphabet, and Northrop Grumman have filed the most patents, with a respective 1,885, 1,000, and 623 total publications. The US government has committed $3 billion in funding for federal quantum projects, which are either being planned or already underway, including the $1.2 billion National Quantum Computing initiative. In addition, the US government almost certainly conducts quantum projects in secret through the Defense Advanced Research Projects Agency (DARPA) and the National Security Agency (NSA).
Benjamin Chin, Associate Analyst in the Thematic Intelligence team at GlobalData, comments: “Quantum computing has become the latest battleground between the US and China. Both countries want to claim quantum supremacy, not only as a matter of national pride but also because of the financial, industrial, scientific, and military advantages quantum computing can offer.”
China quantum computing strategy aims to close the gap
Alibaba leads China’s quantum strategy, investing $15 billion into the DAMO Science and Technology Research Center. Beijing has also invested $10 billion to construct the National Laboratory for Quantum Information Science. When completed, its research focus will be on quantum technologies with direct military applications.
Chin continues: “China has already established itself as a world leader in secure quantum satellite communications. Moreover, thanks to its autocratic economic model, it can pool resources from institutions, corporations, and the government. This gives China a distinct advantage as it can work collectively to achieve a single aim – quantum supremacy. In contrast, US tech companies compete against each other to develop quantum computers. It is only a matter of time before China and the US reach technical parity in quantum computing.”
