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Cross-Region Seed Map #2 Quantum Computing

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Why Now, Quantum Computer?

Quantum computers, once considered a “dream technology,” have begun to rapidly take on a sense of reality in recent years. One symbolic turning point was Google’s demonstration of “Quantum Supremacy” in 2019. Using a 53-qubit processor called “Sycamore,” they solved in about 200 seconds a calculation that would take the world’s fastest supercomputer 10,000 years to complete. This achievement was described by Google’s CEO Sundar Pichai as a “historic milestone comparable to the Wright brothers’ first flight”. Like the Wright brothers’ plane that could only fly for 12 seconds, this experiment itself had no direct practical value. However, just as the first flight demonstrating that “planes can fly” marked the beginning of the aviation industry, this achievement showing that “quantum computation can surpass classical computation” became a major milestone in quantum computer research.

Stimulated by such breakthroughs from U.S. companies, global competition surrounding quantum computers has suddenly intensified. Countries and regions including the United States, China, and the European Union (EU) have positioned quantum technology as a key element of next-generation national competitiveness and are launching national projects with massive funding. For example, the U.S. has accelerated research and development through the National Quantum Initiative Act (2018), while China is also developing quantum research networks and national quantum research centers under state leadership. This is because it is viewed as “one of the foundational technologies that will determine the outcome of the new global power struggle.” According to IDC estimates, by the end of 2027, cumulative investment in quantum computing development from governments and companies worldwide is expected to reach $16.4 billion (approximately 2 trillion yen). With such tailwinds, not only U.S. tech giants like IBM and Google, but also Amazon, Microsoft, and even Chinese and Japanese companies are rushing to enter quantum development.

Particularly noteworthy is the remarkable progress in hardware, with quantum bit counts growing at a rapid pace. Since IBM first offered public access to a quantum processor (then 5 qubits) on the cloud in 2016, they have steadily improved performance each year, announcing the world’s largest chips one after another with the 127-qubit “Eagle” in 2021 and the 433-qubit “Osprey” in 2022. Furthermore, they have published a roadmap to achieve commercial systems with over 4,000 qubits by 2025, aiming for technological evolution at a pace that surpasses even Moore’s Law (semiconductor performance doubling every two years). Google has also set an ambitious goal of “developing a million-qubit quantum computer by 2030” and is working on realizing large-scale quantum computers with error tolerance (error correction capabilities). In China, a team led by Professor Pan Jianwei at the University of Science and Technology of China (USTC) announced successful demonstration of quantum supremacy in 2020 with their “Jiuzhang” photonic quantum computer using 76 photons, and reported similar results in 2021 with calculations using their 66-qubit superconducting quantum processor “Zuchongzhi.” Furthermore, Chinese companies are also developing large-scale machines in collaboration with national projects, and in 2024, it was reported that a subsidiary of China Telecom and a startup completed the 512-qubit scale “Tianyan-504” (with a qubit count matching IBM’s latest machine and reportedly achieving comparable levels of coherence time and readout accuracy).

Amid this intense competition among countries and companies, there are two main answers to the question “Why quantum computers now?” One is, as mentioned above, that we are reaching a technological tipping point. Quantum computing, which had long been limited to theoretical research and experiments with a few qubits, has entered the era of “NISQ (Noisy Intermediate-Scale Quantum) devices” operating at the scale of 50-100 qubits. While this scale still includes noise in calculation results due to the inability to perform error correction, it has been shown that with proper implementation, it can demonstrate “quantum advantage” over existing computers for specific calculations. The other reason is social and economic demand. As Moore’s Law slows down and conventional computer performance improvements plateau, quantum computing and other new computational technologies are considered essential to meet the explosively growing computational demands driven by rapid AI development. This is why governments are incorporating quantum technology into their national strategies and considering it crucial for national security. In a 2020 speech, Chinese President Xi Jinping emphasized the need to take the initiative in the quantum field, stating that “quantum technology is a disruptive innovation that can reconstruct conventional technological systems and is extremely important for ensuring national security.” In the U.S., President Biden signed an executive order in 2022 restricting U.S. companies and investors from investing in Chinese quantum technology, highlighting quantum computers’ geopolitical significance. IBM CEO Arvind Krishna also stated in a 2025 lecture that “remarkable progress will occur in the quantum field over the next 4 years” and indicated that quantum computers will “enter the practical stage within this decade.”

However, quantum computers are still in the research phase, and many experts maintain the stance that “while excessive expectations should be avoided, steady progress is being made.” In its 2024 report, Boston Consulting Group (BCG) states that “while quantum technology’s transformative potential remains significant, it has not yet achieved true commercial advantage,” but adds that “nevertheless, the momentum is undeniable.” In fact, even as global tech investment slowed during 2022-2023, the quantum computing field continued to attract venture investment, with over $1.2 billion flowing in during 2023 alone, showing undiminished industry expectations. Additionally, governments are announcing plans to inject additional public funding of around 1 trillion yen over the next few years in pursuit of “quantum supremacy,” supporting research and development. Thus, through the combination of “technological maturity” and “intensifying competition,” the wave of quantum computers is now approaching.

Major Applicable Markets

So, in which industries and fields are quantum computers expected to deliver value? The answer lies in areas facing “advanced problems that are difficult to solve with current computers.” According to McKinsey’s analysis, four fields – chemistry/life sciences (materials/drug discovery, etc.), financial services, transportation/logistics, and information security – are most likely to benefit earliest from quantum computing, with potential value creation of up to $1.3 trillion (approximately 170 trillion yen) across these areas by 2035. Let’s examine the major application areas and their rationales in order.

1. Drug Discovery and Materials Development (Chemistry/Life Sciences Field): The area where quantum computers are expected to demonstrate their greatest value is in molecular and chemical reaction simulation. Precisely calculating the behavior of drug candidate molecules and the properties of new materials at the atomic level is extremely difficult even with current supercomputers. Solving the movement of electrons within molecules and quantum mechanical effects accurately leads to exponential growth in computational requirements, with examples such as “analyzing all states of a caffeine molecule requires considering 2^43 combinations (an enormous number exceeding trillions).” Google CEO Sundar Pichai states, “Classical computation cannot even understand basic molecular structure. That’s why I’m convinced that quantum computation will eventually become the driving force for progress, whether in climate change countermeasures or new drug development.” Indeed, quantum computers have the potential to faithfully reproduce natural (chemical) behavior, and by calculating complex molecular energy states and reaction pathways, they are expected to bring innovation to drug target evaluation, new material and catalyst design, and development of highly efficient energy processes. For example, the Haber-Bosch process used in fertilizer production accounts for about 2% of global CO2 emissions, but in nature, enzymes achieve similar reactions with lower energy. If quantum computation can unravel how these enzymes work, dramatic energy efficiency improvements in industrial processes may become possible. Major pharmaceutical companies and chemical manufacturers have already begun proof-of-concept experiments with molecular simulation using quantum computers, and partnerships between drug discovery startups and quantum startups are progressing. This is because combining quantum computation with materials informatics and data-driven materials development could dramatically shorten development lead times for new drugs and materials.

2. Financial Services and Management (Finance Field): The financial industry is also frequently mentioned as a major application area for quantum computers. This is because the world of financial engineering contains numerous complex optimization problems. Financial institutions face combinatorially explosive challenges including portfolio risk optimization, fraud detection based on massive transaction data, and exploration of high-frequency trading algorithm combinations. Particularly notable is derivative pricing. Options trading requires large-scale probability calculations called Monte Carlo simulations, but quantum computer algorithms (such as the amplitude estimation algorithm) have been shown to theoretically achieve significant speed improvements. In fact, IBM and major U.S. bank JPMorgan Chase collaborated on quantum computer option price evaluation and reported the possibility of achieving high accuracy with fewer trials compared to classical computing methods. Research is also being conducted on applying quantum optimization to scenario analysis predicting overall market movements and risk management of large-scale investment portfolios. According to McKinsey’s estimates, quantum computing could generate value of up to $700 billion in the financial industry, representing an exceptionally large potential compared to other sectors. Many financial institutions, including JPMorgan and MUFJ Bank, have already established dedicated quantum research teams and are advancing verification projects for quantum risk management models and portfolio optimization. In the insurance industry as well, efforts have begun to apply quantum algorithms to optimize insurance underwriting and reinsurance contracts that involve enormous combinations.

3. Transportation, Logistics, and Manufacturing (Operations Optimization): Large-scale combinatorial optimization exists not only in finance but also throughout supply chain management, transportation planning, and manufacturing process scheduling. Quantum computers and quantum annealing machines (specialized optimization machines utilizing quantum effects) are expected to provide new solutions to these combinatorial problems. In fact, in the field of traffic optimization, Volkswagen has achieved the world’s first successful demonstration of traffic flow optimization using quantum annealing technology. In 2019, the company conducted a real-time route optimization trial using D-Wave’s quantum machine for bus routes in Lisbon, Portugal, demonstrating that quantum computing could be useful for navigation that reduces traffic congestion. Additionally, manufacturers such as Toyota Motor and Hyundai Motor are also researching the use of quantum computers for optimizing production line scheduling and logistics network routing. These are all challenges where the number of possible combinations becomes astronomically large, currently addressed through experience and approximation algorithms, but quantum computing may enable approaches closer to more rigorous and faster optimal solutions. Particularly in the supply chain field, with recent emphasis on ensuring logistics network resilience due to pandemic and geopolitical risks, research on using quantum technology to determine optimal inventory placement and delivery planning is also gaining attention.

4. Security and Cryptography (Information and Communications): From the perspective of “quantum computer threats,” the impact on cryptographic technology is particularly noteworthy. Currently, RSA encryption and elliptic curve cryptography, which support security for financial transactions and internet communications, rely on the difficulty of calculating the prime factorization of large numbers and discrete logarithm problems for their security. However, Shor’s algorithm, published in 1994, demonstrated that theoretically, quantum computers with sufficient qubits could break current public key cryptography like RSA in a short time. While we haven’t yet reached the number of qubits needed for practical use (estimated at several million qubits), preparation for transitioning to “post-quantum cryptography” has become urgent in anticipation of quantum computer advancement. The U.S. National Institute of Standards and Technology (NIST) began selecting standard algorithms for quantum-resistant cryptography in 2022, with Japan and Europe following suit. Furthermore, when quantum computers are fully realized in the future, they will not only enable advanced cryptographic decryption but also give rise to new security infrastructure through quantum communication and quantum cryptography. China has strengthened its position in the quantum cryptography field, leading the world by launching the quantum communication satellite “Micius” (in 2017), and the international competition surrounding quantum security is unfolding not only at the business level but also at the national strategic level. For companies as well, it has become necessary to consider countermeasures (such as updating classical cryptography and utilizing quantum key distribution) as part of long-term risk management to protect their confidential data from “future quantum hackers.”

As outlined above, quantum computers hold the potential to become game-changers across various industries, particularly in areas where computation is a bottleneck. However, the benefits are expected to emerge gradually. BCG divides the market maturation of quantum computing into three phases. The first phase is the NISQ era until around 2030 (creating partial value with small-scale quantum machines), the second phase is the quantum advantage era in the 2030s (enabling practical calculations surpassing classical computers without error correction), and beyond 2040 is the era of complete fault tolerance (realizing large-scale general-purpose quantum computers). Currently still in the first phase, value creation is expected to remain limited to about $100-500 million annually in fields like materials and chemistry, but proof-of-concept results are gradually accumulating. In Japan as well, major companies like Mitsubishi Chemical and FUJIFILM are exploring the possibilities of materials development using quantum computing, and companies like JAL and JR East are attempting to improve operation schedules through quantum optimization, as major companies take the lead in PoC (Proof of Concept) initiatives. Human resource development and ecosystem formation with an eye to the future are also important. Fortunately, in recent years, there has been an increase in students majoring in quantum information at universities and graduate schools worldwide, and the pool of talent capable of utilizing quantum computers is steadily expanding.

Regarding regional corporate trends, in the United States, IT giants like IBM, Google, Microsoft, and Amazon are competing in quantum cloud services and hardware development, while startups like IonQ, Rigetti, and D-Wave (specializing in quantum annealing) are emerging. In China, tech giants like Alibaba and Baidu initially led research and development, with Alibaba notably establishing a joint research institute with the Chinese Academy of Sciences (2015) and experimentally providing an 11-qubit machine on the cloud. However, both companies recently changed direction, with reports of them successively closing their quantum research divisions at the end of 2023. Alibaba donated research equipment to Zhejiang University, and Baidu transferred research results to the Beijing Academy of Quantum Information Sciences (BAQIS), creating a trend in China of consolidating quantum development from private companies to government institutions. This is attributed to difficulties in obtaining quantum-related parts and international talent exchange due to U.S. export restrictions to China, as well as the desire to concentrate resources on AI amid the generative AI boom. Meanwhile, in Japan, major corporations like Fujitsu and NTT are leading quantum computer research. Fujitsu, in collaboration with RIKEN, has developed Japan’s first superconducting quantum computer, announcing the operation of a 64-qubit machine in 2023. This has established Japan’s technological foundation for developing quantum computing hardware independently, aiming to build a hybrid computing environment (quantum machine + supercomputer) in the future. Additionally, NTT leveraged its strength in optical communications to develop the world’s first general-purpose optical quantum computing platform in partnership with RIKEN and venture companies. In 2024, they began providing general access to a large-scale optical quantum computer (with over 100 time-multiplexed modes) on the cloud, demonstrating Japan’s presence in technology through an approach different from superconducting methods. As quantum computer development progresses with each country leveraging its strengths, it’s becoming increasingly important for business professionals to anticipate “what will change with quantum computers.”

AI, and/or Quantum Computing?

In recent years, “AI and quantum computing” have increasingly been discussed as hot topics in the technology industry. While the remarkable progress of generative AI has dominated the conversation in recent years, quantum computing has also been gaining attention. Is there a correlation between these two revolutionary technologies, or are they each following their own paths?

The first point to note is that currently, there is no direct technological connection between the AI boom and quantum computer development. Current AI technology, centered around deep learning, primarily operates on GPUs and specialized semiconductors, with no examples of quantum computers contributing to these calculations. In other words, advanced AI models like ChatGPT, both their training and inference, are performed using 100% classical computing resources. Therefore, rather than “AI development directly driving quantum computer demand,” it’s more accurate to say that the explosion in AI’s computational demands has created concerns about future computational resource shortages, leading to increased expectations for quantum computers as a new technology to address this. Indeed, as AI research progresses, computational costs and energy consumption have become major challenges, and some problems have emerged that are difficult to solve with conventional computers alone. Quantum computers are drawing attention as a technology that challenges these “limitations of classical computing architecture.”

On the other hand, there are significant expectations for synergy between AI and quantum computing. IBM CEO Arvind Krishna has stated that “AI and quantum computers have a complementary relationship.” According to him, while AI excels at learning patterns from large amounts of data and performing human-like intellectual tasks, quantum computers are good at solving massive combinatorial and probabilistic problems, meaning each has its own strengths. As an example, Krishna explains that while AI cannot uncover “how caffeine gives people energy,” quantum computing might be able to explore the reason at the molecular level. In other words, AI excels at finding empirical correlations, while quantum computers excel at uncovering causality based on natural laws. Drawing an analogy between “AI as higher algebra and quantum as probabilistic advanced mathematics,” he emphasizes that “the two are not competitors but collaborators in problem-solving.”

Indeed, among experts, the view that “AI and quantum are more collaborative than competitive” is prevalent. While AI (classical computing) currently has the advantage in scalable problem-solving, quantum computing will have its role in problem domains with deep complexity that classical methods cannot handle. Looking at it this way, in the medium to long term, the combination of AI and quantum is expected to work together to tackle difficult challenges facing humanity (such as drug discovery and climate change mitigation).

However, in the short term, it’s undeniable that AI’s progress has become a factor in lowering expectations for quantum computers. A recent MIT Technology Review article suggested that “even molecular simulations, which quantum computing is supposed to excel at, might be replaceable by AI models on classical computers.” Indeed, as chemical computation methods utilizing deep learning emerge (like DeepMind’s AlphaFold breakthrough in biological molecular structure prediction), there are increasing instances where AI approximations can be obtained even for problems that were thought to “require quantum computers.” BCG’s 2024 report also cites “competition from classical computing being fiercer than expected, in addition to hardware development difficulties” as one reason why excessive expectations during the NISQ era have been revised. Particularly, as AI (classical) has produced better-than-expected results in scientific fields and classical solutions have emerged for previously difficult problems, the need for quantum computing has diminished compared to before. In other words, there is concern that “conventional technologies, including AI, might solve many problems before quantum computers mature.”

However, this could also mean that “quantum and AI working together would be even more powerful.” As mentioned in the MIT article, quantum computers may contribute to accelerating and reducing power consumption in AI systems themselves in the future. For example, quantum computing might accelerate machine learning algorithms, or if it can optimize the calculations needed for training large AI models, it might help mitigate AI’s energy consumption problems. In fact, the academic field of quantum machine learning (Quantum Machine Learning) is gaining momentum, with research into neural networks running on quantum circuits and AI methods utilizing quantum data. Conversely, attempts to use AI technology in quantum computer development are also progressing. Examples are emerging of using AI to optimize quantum bit error correction code design and machine learning for quantum chip calibration. This means AI and quantum are in a relationship where they enhance each other, and in the long term, they might even merge within the broader framework of “computation.” In the vision of “quantum-centric supercomputing” proposed by IBM and others, quantum computing resources and classical computing resources including AI seamlessly cooperate in the cloud, allowing users to solve computational problems with optimal resource allocation without conscious effort.

In summary, the evolution of AI and the rise of quantum computers are not necessarily in a trade-off relationship, but rather can be seen as mutually stimulating each other. While quantum technology’s progress may be less noticeable in the short term due to the AI boom, governments and top companies continue to steadily develop quantum technology. As mentioned earlier, IBM CEO Krishna stated in his 2025 lecture that “quantum provides answers to deep problems that AI cannot handle, and the two are complementary rather than competitive.” True to these words, combining the intelligence brought by AI with the computational power of quantum computers could enable humanity to tackle previously unsolvable problems. For example, in new drug development, we can expect collaboration where AI generates promising molecules and quantum computers precisely evaluate their properties. In business as well, the true value will be demonstrated by integrating both technologies, such as AI predicting demand and quantum computing presenting optimal production plans. While the two are at different developmental stages currently, both AI and quantum are becoming recognized as essential components of future digital strategy among management. Rather than focusing on quantum computing as an isolated boom, it’s important to position quantum technology within the broader evolution of computational technology, including AI.

Current State of Quantum Computing in 🇯🇵🇮🇩🇻🇳🇮🇳

Government and Private Investment Scale

Looking at the scale of investment in quantum computing across the four countries where we have investment bases – Japan, Indonesia, Vietnam, and India – there are significant differences between each country. In recent years, the Japanese government has invested approximately 30 billion yen (about $280 million) in quantum technology, and plans to invest 15-20 billion yen in the Moonshot Program, which aims to realize a universal fault-tolerant quantum computer by 2050. Furthermore, in the supplementary budget for fiscal year 2024, approximately 1.5 trillion yen has been allocated for quantum technology development alongside semiconductors and AI, positioned as part of strengthening the digital industry infrastructure. In the private sector, major companies like Fujitsu, Toshiba, and NTT are investing in research and development, while VC investment in Japanese startups is estimated to total several billion yen (with estimates suggesting over $71.5 million in the past decade). Meanwhile, the Indian government announced the National Mission on Quantum Technologies & Applications (NM-QTA) in 2020, setting a five-year budget framework of 80 billion rupees (approximately $966 million). In fact, in 2023, the cabinet officially approved a National Quantum Mission worth 60.03 billion rupees (approximately $730 million), focusing support on areas such as quantum communication, computing, and sensing. Private investment in India remains small, with total private quantum-related investment reportedly around $12 million (about 1/250th compared to the US’s $300 million).

In Indonesia and Vietnam, government investment in quantum computing is extremely limited. While the Indonesian government established a Quantum Physics Research Center under the National Research and Innovation Agency (BRIN) in 2022, its budget is very modest compared to advanced nations. Although there is no published national strategy yet, they have set a long-term vision to establish knowledge infrastructure and facilities for quantum technology by their “Golden Era” in 2045. Vietnam also announced a national policy in 2022 through a Prime Minister’s decision to “research and master quantum technology by 2030,” but specific budget figures have not been disclosed. In essence, public investment in Indonesia and Vietnam is orders of magnitude smaller than in Japan and India, and there is hardly any VC investment from the private sector.

Number of Research and Development Centers and Major Projects

Japan has numerous quantum computer research centers. Under the government-led Q-LEAP (Quantum Leap) program, domestic universities, research institutions, and companies are collaborating to advance research and development in priority areas such as quantum simulation, computation, quantum sensing, and ultrashort pulse lasers. A major center is RIKEN’s Quantum Computing Research Center (RQC), where under the leadership of Yasunobu Nakamura, full-stack research from hardware like superconducting qubits and optical quantum computing to software is being conducted, with dozens of researchers across multiple teams engaged in cutting-edge development. Additionally, through collaboration between the University of Tokyo and IBM, the IBM Quantum System One (127-qubit “Eagle” processor) was installed in Kawasaki and has been operational since 2021. This is Japan’s first commercial gate-based quantum computer, used by an industry-academia consortium centered around the University of Tokyo. Various other projects are also underway, including quantum cryptographic communication network demonstrations by NTT and Tohoku University, and quantum simulator development by Fujitsu and RIKEN. Quantum information research groups are also present at universities across the country (University of Tokyo, Kyoto University, Tokyo Institute of Technology, etc.), and as of 2025, it is reported that the University of Tokyo has 64 registered quantum-related projects.

India is also developing research centers under national projects. A notable example is the Tata Institute of Fundamental Research (TIFR), where construction of the country’s first quantum computer (likely using superconducting technology) is reportedly underway. Additionally, the Centre for Development of Telematics (C-DoT) in Delhi has established a quantum communications lab and successfully demonstrated domestically developed Quantum Key Distribution (QKD) solutions (2021). In academia, quantum technology laboratories have been established at institutions known for theoretical research such as IISc Bangalore and major IITs (Mumbai, Delhi, Madras, etc.), conducting research and human resource development in quantum computing and quantum materials. For example, under the QuEST program launched in 2018, projects centered around IISc and IITs have been developing quantum computing simulators. India is estimated to have about 110-145 basic researchers in the quantum field (about 200 PIs including related fields), scattered across universities and research institutes nationwide. The government plans to establish several quantum technology hubs across the country, aiming to build a research and development center network that includes companies and startups.

In Indonesia, while full-scale quantum computing research centers are still limited, sprouts are beginning to emerge. Established in 2022, the BRIN Quantum Physics Research Center serves as the national core, with about 35 researchers across seven research groups including quantum information and computing, quantum simulation, and quantum devices. This is Indonesia’s first national quantum research center, aimed at building foundations for the “Second Quantum Revolution.” In universities, the Institut Teknologi Sepuluh Nopember (ITS) in Surabaya established a Quantum Computing & Information Group in 2022, becoming the country’s first academic community to initiate international collaborative research and human resource development. Institut Teknologi Bandung (ITB) has also launched quantum information courses, with students learning quantum programming through simulators. On the hardware front, a desktop Nuclear Magnetic Resonance (NMR) quantum computer provided by Chinese company SpinQ was introduced to ITB in 2023, becoming Indonesia’s first quantum computer. While this is a small-scale device for education and research, the significance of creating an environment where quantum computers can be experienced firsthand in the country is substantial.

Vietnam, while not yet having prominent specialized quantum computing centers, has some active research institutes. The Vietnam Academy of Science and Technology (VAST) in Ho Chi Minh City has a theoretical physics laboratory conducting quantum physics and computational theory research. Additionally, quantum information research groups and scholars with overseas experience hold positions at institutions like Hanoi National University and Vietnam National University Ho Chi Minh City, conducting small-scale research. While the government has set a strategic goal to “master quantum technology by 2030,” specific projects for implementation are yet to come. However, international cooperation is emerging, with Russia’s Rosatom showing interest in quantum technology cooperation with Vietnam, initiating human resource development support such as inviting Vietnamese researchers to international conferences. Looking ahead, they aim to establish quantum technology centers at universities and develop a foundation for applied research in communications and cryptography while incorporating overseas knowledge.

Number of Startups and Representative Companies

Looking at quantum computer-related startup trends, while Japan and India are gradually seeing an increase in companies, Indonesia and Vietnam are still in their infancy. As of January 2025, Japan has approximately 17 quantum computing startups, with 6 of them having secured funding (2 at Series A or higher). A prime example is QunaSys (founded in 2018). QunaSys focuses on developing software for quantum chemistry calculations, operating the corporate consortium “QPARC” and providing the high-speed quantum circuit simulator “Qulacs”. The company has progressed to Series B, raising a total of 23.7 million dollars (approximately 2.6 billion yen). In the hardware sector, Nanofiber Quantum Technologies (founded in 2022) has gained attention for developing quantum computing chips and measurement devices, raising about 9.9 million dollars in Series A funding. Other notable companies include Quantum Biosystems in quantum bio-measurement, Quemix in quantum cryptography, and KandaQuantum in quantum algorithm consulting. With spin-offs from large corporations and entrepreneurs with overseas research experience, Japan’s startup ecosystem is steadily taking shape.

In India too, quantum technology startups have been increasing in recent years, with an estimated 15-20 companies existing as of 2024. In Bangalore alone, one of the major hubs, there are 15 quantum computing-related companies, with 8 of them having raised a total of approximately 29.6 million dollars. A notable startup is QNu Labs (founded in 2016). QNu Labs is a quantum cryptography communications startup developing quantum key distribution and quantum random number generators, producing India’s first commercial QKD product. Additionally, QpiAI (founded in 2019) is developing solutions combining quantum computing and AI, aiming to build a superconducting quantum computer prototype. QpiAI raised 6.5 million dollars in pre-Series A funding in 2024, accelerating their hardware development. In the hardware sector, other startups have emerged focusing on specific technological elements, including Dimira (domestically produced cryogenic cables), QuNastra (quantum cryogenic equipment and single-photon detectors), and Pristine Diamonds (diamond materials for quantum sensors). The Indian government has selected these 8 promising startups for support under the National Quantum Mission, working to strengthen the ecosystem through public-private partnerships.

In Indonesia and Vietnam, the quantum computing startup landscape remains largely underdeveloped. In both countries, there are only a handful of emerging companies that specialize in quantum technologies, most of which are still in the research phase or operate in adjacent service areas.

In Indonesia, although some companies bear the term “quantum” in their names (e.g., Quantum Teknologi Nusantara), they are primarily focused on AI or IT consulting, and there are currently no confirmed players actively working on quantum computing itself. Instead, some existing cybersecurity firms show interest in quantum-safe technologies such as post-quantum cryptography and quantum key distribution. A few organizations also focus on importing foreign quantum technologies and providing educational programs around them.

Similarly in Vietnam, university-led initiatives and software development firms are beginning to explore quantum cryptography and post-quantum cryptographic applications, but no dedicated quantum startups have emerged yet. For instance, there are scattered cases like a student team from Hanoi University of Science and Technology prototyping a security solution using quantum random number generators.

Overall, both Indonesia and Vietnam lag significantly behind countries like Japan and India—each with over a dozen quantum-focused startups—and there have been virtually no notable fundraising cases in this space to date.

Patent Applications and Technological Strengths

A comparison of global trends in quantum technology patent applications reveals a clear disparity among countries. In particular, China and the United States stand out significantly, followed by Japan, with India trailing far behind. India currently ranks 9th globally in the number of patent filings, with a volume vastly lower than the top countries. However, India shows strengths in specific areas such as quantum cryptography and post-quantum cryptography, ranking in the global top 5 in terms of research quality, suggesting potential for catching up through future patent acquisitions. Among Indian companies, QNu Labs has obtained domestic patents for quantum cryptography devices, but overall, the country’s patent portfolio remains thin.

Japan maintains a certain level of presence in quantum technology patents. Major companies such as Toshiba, Fujitsu, NEC, and Hitachi have filed numerous patents related to quantum cryptography, quantum computing hardware, and quantum materials, with a combined total of over 600 quantum-related patents reportedly filed both domestically and internationally. Japan’s particular strength lies in quantum key distribution (QKD), and Toshiba has led R&D efforts in QKD from the early stages and holds a large number of related patents. Fujitsu is also forming a portfolio around hardware implementation and fault-tolerant techniques for quantum annealing (Ising machines), while NEC has a proven track record in superconducting qubit technologies. These companies are not only filing patents domestically but also in the US, Europe, and China to build a globally competitive IP network. That said, the momentum of China and the US is overwhelming. According to some analyses, over 5,000 quantum-related patents were granted by the USPTO in the past decade. In China, quantum patent applications have reportedly been growing at an annual rate of 120% in recent years, suggesting that Japan will need further investment in R&D and a more aggressive IP strategy to keep up.

In Indonesia and Vietnam, there are almost no patent applications related to quantum technologies. Neither country has reported any filings by companies or universities for core quantum computing technologies, with only a few applications in surrounding fields (such as cryptographic protocols or optical components) at most. In fact, Vietnam has only just included quantum technology on its “Priority Development High-Tech” list, and substantial IP creation has yet to begin. Within the Indonesian government, there is growing concern that the country may remain merely a user while other nations secure the patents. For researchers and companies in Indonesia and Vietnam to gain international visibility through patents, they will first need to build a foundation of basic research and talent development—which will take time.

University and Research Institution Initiatives

In Japan, universities and national research institutions are actively engaged in developing quantum talent. The University of Tokyo, Keio University, Osaka University, and Tohoku University have established courses and graduate programs in quantum information and quantum engineering, offering students education in quantum computing theory and programming. The University of Tokyo launched a collaborative course with IBM, enabling domestic PhD students to access IBM’s quantum cloud for research purposes. Organizations such as the Japan Society for the Promotion of Science (JSPS) and the Japan Science and Technology Agency (JST) also support young researchers through quantum-related fellowships and research project grants. As a result, Japan has been prolific in academic publications and ranks among the top countries in quantum computing and quantum cryptography research. According to an analysis of scientific papers from 2000 to 2018, Japan ranks among the global leaders in quantum technology publications, particularly in quantum materials and quantum hardware. A notable example of social implementation of research results is an intercity quantum key distribution experiment conducted by Toshiba Europe and the University of Bristol, which used foundational technology developed by Toshiba in Japan—demonstrating the international impact of Japanese research.

India’s universities and research institutions have also expanded their quantum education efforts in recent years. Leading science and engineering schools like IISc and various IITs now offer not only advanced courses in quantum mechanics but also specialized lectures on quantum information theory and quantum algorithms. For example, IIT Madras launched an introductory online course in quantum computing that was taken by a large number of students and professionals. Emerging research universities like IIT Delhi and IISER (Indian Institutes of Science Education and Research) have also launched dedicated quantum computing research groups, with graduate students working on quantum circuit design and quantum machine learning. The number of publications is also on the rise, with data from 2018 to 2022 showing that India ranks 6th globally in the quality of research on quantum sensing and 11th in quantum computing. Notably, India ranks 5th globally in post-quantum cryptography, demonstrating strong results in the intersection of cryptographic mathematics and quantum computation. To support talent development, the Indian government has plans to establish quantum technology hubs based at institutions like IISc and IITs, offering scholarships to students pursuing PhDs in quantum fields. These efforts include collaborations with organizations like ISRO (Indian Space Research Organisation) and DRDO (Defence Research and Development Organisation) to secure top talent in the quantum domain through fellowship programs, marking a coordinated effort across public and private sectors.

In Indonesia, quantum computing education at universities is still in its early stages. The aforementioned BRIN Quantum Research Center is leading the way by forming partnerships with domestic universities to accept student interns and dispatch instructors. Top engineering universities like ITB and ITS have started offering special lectures in “Quantum Information” and “Quantum Algorithms” for senior undergraduates and graduate students. In 2024, ITB held an industry-academia-government seminar to raise awareness among students and engineers on the theme of “The Impact of Quantum Computing on Future Industries.” At the seminar, a senior government official (Vice Admiral Amarulla) emphasized the need for quantum security technologies to protect Indonesia’s national infrastructure, and introduced BRIN’s ongoing preparation of high-performance computing networks for quantum research. As such, there is growing interest in post-quantum cryptography and quantum-safe technologies, which is likely to lead to further education and research in these areas. While students are currently gaining quantum computing experience mainly through simulation environments, they are expected to have opportunities for hands-on practice thanks to the planned deployment of actual machines from SpinQ. In Vietnam as well, lectures on quantum mechanics and quantum information are available at top science universities. At Vietnam National University, Hanoi, the physics department has a quantum information research group, and some students are conducting their graduation research by accessing quantum cloud services provided by IBM and Google. The Vietnamese government is currently considering including quantum technology in its high-tech human resource development programs, and may soon roll out initiatives (such as research grants and capital investment) aimed at attracting overseas-trained talent to help build a domestic foundation for quantum technology by 2030.

A New Digital Divide?

In the field of quantum computing, a widening gap—what could be called a “quantum digital divide”—is emerging between major powers and emerging economies. Differences in government and private investment levels are directly reflected in disparities in research output and industrial development.

For example, in terms of research publications, the United States and China have long been the top two, followed by Japan. India has only recently made it into the top 10, while Indonesia and Vietnam have virtually no presence in the data. From 2000 to 2018, the number of quantum technology papers published was approximately 13,489 for the U.S., 12,110 for China, and just 1,711 for India, ranking it 10th globally. When looking at the top 10% of most-cited papers, the U.S. still leads, China ranks third, while India falls to 20th. This shows a significant gap from the very stage of intellectual production. Even in patent applications, although Japan is holding its ground to some extent, it still files only a fraction of the patents compared to China and the U.S., whose superior investments yield dominant results. The gap with India and other emerging nations is even more pronounced.

Government budgets, VC investment, and startup activity show the same trend—investment size directly correlates with the number of companies and total fundraising. In Japan and the U.S., dozens to over 100 quantum startups are competing and moving massive capital, while India only recently saw the emergence of a dozen or so startups, collectively raising tens of millions of dollars, and Indonesia and Vietnam are close to zero. This suggests that a capital gap directly leads to a gap in entrepreneurial activity and innovation. Developing quantum computers requires high-level infrastructure investment and talent acquisition, making it difficult to achieve breakthroughs without national support or large-scale private funding. Consequently, countries that are already investing heavily are poised to control the intellectual property and industrial leadership in quantum technologies, while others risk becoming mere “users” of such technologies. Indeed, Indonesian policymakers have raised alarms about the risk of falling into a position where other nations monopolize the patents while Indonesia becomes only a user. As such, investment gaps are quickly translating into technological gaps in the quantum space, signaling a growing digital divide—now a “quantum divide.”

That said, there are exceptions and possible workarounds. Countries like India, with a strong talent pool, have made notable progress in theoretical research and software domains, even with limited funding (e.g., post-quantum cryptography). The rise of cloud-based quantum computing services now allows researchers and companies in hardware-poor countries to remotely access machines from IBM and AWS and develop algorithms. Vietnam, for instance, is leveraging this advantage to offer its students hands-on experience in quantum programming. Therefore, while investment gaps exist, they do not necessarily imply an insurmountable chasm—creative strategies and international collaboration can offer paths for catch-up. However, in the medium to long term, it is clear that building a homegrown R&D and industrial base will require significant investment, making it essential for governments to commit to closing the digital divide.

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