NEC has quietly quit quantum computing hardware development, report claims — company says it will continue to evaluate practical applications and industrialization of quantum technologies

NEC, once a pioneer in quantum computing hardware, has quietly discontinued its development of quantum computing machines, according to a Diamond Online report. The company, which began researching quantum computing technologies in the 1990s, demonstrated the world's first superconducting solid-state qubit in 1999. However, NEC concluded that developing commercial quantum computing hardware would take too long to generate adequate returns.

Many of NEC's researchers moved to rival Fujitsu, which continues to invest heavily in superconducting quantum computing hardware. NEC does not characterize its move as a withdrawal from quantum computing but rather as a focus on evaluating practical applications and industrialization of quantum technologies. The company continues to conduct proof-of-concept projects with customers.

Fujitsu's arrival of experienced NEC researchers could strengthen its already advanced superconducting quantum computing operation. NEC's withdrawal is notable as few major corporate laboratories that pioneered quantum computing in the 1990s have completely abandoned quantum-computer hardware. IBM has become one of the industry's largest developers of quantum computing systems.

NEC's departure from quantum computer hardware occurs amidst mounting development costs and the company's current business focus on IT services, enterprise systems, aerospace and defense, telecom infrastructure, and AI and security.