Asia Pacific is becoming a hotbed for quantum computing development

Countries such as Japan, India, Australia, Singapore, South Korea, Taiwan, and others are becoming global leaders in quantum computing development. It offers significant opportunity for investment and partnership in the region.

It’s not very often said, but quantum computing has the potential to be a revolutionary, paradigm-shifting technology innovation. Revolutionary, not evolutionary. If the technology can be harnessed, quantum computing will blow traditional silicon-based computing out of the water and make Moore’s Law, which has ruled the roost since the 1950s, completely redundant. It could make modern computing, as we know it, obsolete. It’s akin to high-school physics versus quantum physics, literally.

Governments around the world rushing to bolster quantum computing initiatives

Given the current global semiconductor trade stand-off and the tense nature of the global supply chain for advanced chips, it makes quantum computing an extremely attractive proposition. That’s why governments around the world are racing to invest in, innovate, and develop quantum computing technologies. But it’s still very much an early-stage technology.

Unsurprisingly, the U.S. and China lead the way, with the vast resources and human talent each has. But other states in the Asia Pacific region, including Japan, South Korea, Singapore, India, Australia, Taiwan, and others, are focusing on quantum computing innovation, with governments developing initiatives and building quantum hubs as they see it as an opportunity to climb the global technological ladder.

According to Fortune Business Insights, the global quantum computing market is forecast to grow from $1.16 billion in 2024 to $12.6 billion by 2032 – over 10 times growth. But it also states that the Asia Pacific region will be the fastest growing market for quantum computing, increasing at a CAGR of 38.2% over the next eight years^[1].  That equates to some significant investment and business opportunities for North American companies.

Western companies already have a quantum presence in Asia

The Asia Pacific region has already attracted the interest of Western companies such as Google, IBM, Microsoft, Quantinuum, and Rigetti, to name a few, as well as Western venture capital and capital equity firms, which have been investing in quantum companies and research in the region for the last few years.

For example, IBM announced in December 2023 that it would build its first quantum innovation center in Asia at Japan’s Keiko University. The IBM Quantum Network there now includes JSR, MUFG Bank, Mizuho Financial Group, and Mitsubishi Chemical. Toyota and Sony are also collaborating on the project.

While the U.S. of course is intent on developing its own quantum ecosystem, there are also huge opportunities for U.S. companies to invest in innovative Asian quantum enterprises in countries outside of China. A growing expertise, government support and incentives, innovative R&D, and East-West partnerships are pushing Asia’s quantum computing sector.

The U.S. and China are, naturally, keeping their quantum innovations secret from each other. In fact, in August 2023, the Biden administration signed an Executive Order to halt American investment in certain Chinese technologies, including advanced semiconductors and quantum computing.

China has invested by far the most in quantum technologies. But there is a huge amount of R&D and start up innovation, as well as investment occurring in Asia in quantum computing. According to the Center for Strategic & International Studies, the following countries have the most announced investments in quantum technology^[2]:

1. China – $15.3 billion
2. Germany – $5.2 billion
3. United Kingdom – $4.3 billion
4. United States – $3.8 billion
5. South Korea – $2.4 billion
6. France – $2.2 billion
7. Japan – $1.8 billion
8. India – $1.7 billion
9. Canada – $1.4 billion
10. Netherlands – $1 billion

Outside of China Asia offers significant opportunity for quantum investment and partnership for U.S. companies

Bear in mind, though, that U.S. technology giants such as Google, IBM, Microsoft have also poured billions of dollars of private funding into quantum computing development in the region. For example, IBM has filed the most patents of any individual company at 2,500, followed by Google (1,500), and Microsoft (1,200)^[3].

However, between 2004 and 2023, China as a country filed nearly twice as many quantum patents as the U.S. (23,120 versus 12,597, respectively)^[4]. According to the Washington Technology Industry Association (WTIA), China holds 54% of global quantum technology patents, with the second closest country being Japan with just 15%.

While there are unlikely to be many investment and partnership opportunities in quantum computing in China for U.S. companies, Asia is a hot bed for R&D, innovation, and real-world quantum computing development. It offers a significant opportunity for U.S. companies and institutions to invest in, partner with, and benefit from the region’s rapidly growing quantum expertise.

Pamir Consulting has a rich heritage of helping U.S. companies to enter Asian markets, while minimizing risk and maximizing opportunity. We have worked with organizations of all sizes, including Fortune 200 enterprises. We provide a full risk assessment that highlights potential future risks while optimizing your entry into Asia.

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^[1] https://www.fortunebusinessinsights.com/asia-pacific-quantum-computing-market-107724

^[2] https://www.csis.org/blogs/perspectives-innovation/quick-take-quantum-technology-global-competition

^[3] https://patentpc.com/blog/quantum-computing-patent-race-whos-filing-the-most-quantum-patents-latest-data

^[4] https://ipwatchdog.com/2024/02/13/patent-landscape-quantum-computing-survey-patenting-activities-different-physical-realization-methods/id=173303/