Major cloud service providers (CSPs) are rolling out quantum computing chips, pushing original design manufacturers (ODMs) to ramp up their quantum initiatives. While commercial quantum computing may still be three to five years away, ODMs recognize a familiar pattern from the cloud and AI booms—early adopters gain the edge, while latecomers risk falling behind.
Amid this growing urgency, Quanta Computer has committed up to US$35 million in strategic investment to Rigetti Computing, a US-based quantum computing firm.
Quanta's quantum bet: a strategic move
On February 28, Quanta announced the purchase of roughly 3.02 million shares in Rigetti Computing at US$11.58 per share, with a total investment capped at US$35 million. While the stake is relatively small, the move marks a strategic pivot in Quanta's approach to quantum computing.
Quanta Chairman Barry Lam initially took a cautious stance on quantum computing. In April 2019, he projected that practical applications were still 15 to 20 years away. But by November, he had reversed course, revealing that Quanta had already deployed engineers to work on quantum computing projects.
Quantum acceleration: a tipping point?
Quanta has remained at the forefront of cloud and AI advancements, largely due to Lam's sharp instinct for emerging technologies. Now, with CSP giants launching quantum chips and Quanta making its most significant quantum investment yet, the key question is whether the quantum era is arriving ahead of schedule.
In 2019, Lam highlighted quantum computing's alignment with Quanta's strengths, particularly in processing massive data loads at unparalleled speeds. He pointed out that the surge in data demands ultra-small processing nodes—potentially 1nm to 2nm—and optical networking to keep pace with rapid transmission requirements.
Tech giants fuel ODM anxiety
Lam's evolving outlook coincided with breakthroughs from IBM and Google. In 2019, Google's Sycamore processor reportedly performed a calculation in 200 seconds that would take a conventional supercomputer 10,000 years. Now, with Google, Microsoft, and AWS pushing deeper into quantum chip development, ODMs face mounting pressure to carve out their own position in the space.
Quanta Vice Chairman C.C. Leung shared similar concerns in 2019, warning that quantum computing's impact might come sooner than anticipated. "If quantum computing upends the industry in 10 years, where does that leave us?" he questioned.
Quanta-Rigetti partnership: a strategic collaboration
Berkeley-based Rigetti Computing is a leading quantum computing firm. As part of its partnership with Quanta, both companies will each invest over US$100 million in the next five years to advance superconducting quantum computing technology.
Rigetti stated that Quanta's investment strengthens its position in the quantum computing market. Rigetti's modular superconducting quantum architecture enables seamless integration of innovations, while Quanta's expertise in notebook and server manufacturing brings complementary advantages that could drive faster quantum advancements.
Foxconn's quantum ambitions
Quanta isn't the only Taiwanese heavyweight betting on quantum computing—Foxconn has been making quiet but steady moves in the space.
Since launching the Hon Hai Research Institute (HHRI) in 2020, Foxconn has prioritized quantum computing but taken a different path from hardware development. Instead, it focuses on optimizing quantum performance through advanced coding techniques and algorithm design, refining qubit manipulation and simulation.
Given the fundamental differences between classical and quantum computing, maximizing the benefits of quantum technology requires a deep understanding of its unique properties. This includes mastering specialized coding methodologies derived from quantum mechanics.
Foxconn has stepped up its investments in Taiwan's quantum computing ecosystem. In 2023, it opened the country's first ion trap quantum computing lab, laying essential groundwork for future research and development.
Taiwan's role in the quantum era
Many ICT firms are eyeing quantum computing primarily for future manufacturing prospects. Foxconn, however, is taking a deeper approach, investing in core technologies like quantum algorithms and coding frameworks to build Taiwan's foundational quantum infrastructure.
As CSPs expand their quantum ambitions and Taiwanese tech leaders position themselves strategically, the industry stands at a crucial inflection point.
Quantum computing's timeline for commercial viability remains uncertain, but one thing is clear—companies that hesitate now risk falling behind in the next era of computing.
Article translated by Levi Li and edited by Jack Wu
