US government gives IBM company $1 billion to build America’s quantum future

The U.S. government is putting some serious money behind the future of quantum computing. Anderon, an IBM company, has finalized an agreement with the U.S. Department of Commerce for a $1 billion award under the CHIPS and Science Act.

The money will support research and development at Anderon as it expands quantum wafer manufacturing in the United States. IBM is also putting another $1 billion into the company, meaning there is now a lot of money riding on the idea that quantum computing will eventually need manufacturing infrastructure on a much larger scale.

Anderon is headquartered in Albany, New York, where it operates a 300-millimeter pure-play quantum wafer foundry. Rather than building complete quantum computers, the company focuses on manufacturing the specialized wafers needed by companies developing quantum hardware.

Those wafers can support superconducting qubit arrays, quantum input and output signaling, and components used in readout signal chains. Anderon says it plans to support additional types of quantum technology in the future.

The federal award isn’t entirely unexpected. IBM and the Department of Commerce announced a letter of intent for the funding in May. The latest agreement makes the $1 billion award official and gives Anderon the money to move ahead with its expansion plans.

“This agreement with the Department of Commerce strengthens our ability to deliver the manufacturing scale the quantum industry needs,” said Mukesh Khare, CEO of Anderon. “We’re building a foundation that will let quantum move from research breakthroughs to real-world impact.”

Anderon isn’t starting from scratch, either. The company says its first quantum wafers are already moving through the Albany facility. The goal is to take manufacturing techniques developed through research and turn them into something that can eventually operate at commercial scale.

That could become important if quantum computing lives up to even some of its promises. Researchers and technology companies are exploring quantum systems for areas including chemistry, materials science, optimization, and cybersecurity, but today’s machines are still far from replacing conventional computers for everyday workloads.

Manufacturing is another piece of that puzzle. Even if researchers develop better qubits and error-correction techniques, useful quantum computers will eventually need a reliable supply chain capable of producing the underlying hardware repeatedly and at scale.

For the U.S. government, the investment also fits into a broader effort to keep advanced semiconductor manufacturing and research inside the country. The CHIPS and Science Act has largely been associated with conventional semiconductor production, but this award extends that strategy into quantum hardware.

There is still an enormous question hanging over all of this, of course. Quantum computing has attracted billions of dollars and years of ambitious predictions, while practical large-scale systems remain a work in progress.

The government is now betting $1 billion that America’s quantum manufacturing infrastructure should be built before that future arrives. Combined with IBM’s own $1 billion commitment, Anderon has plenty of money to work with. Now it has to help prove that the quantum future everyone keeps talking about is actually coming.

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Written by

Brian Fagioli

Technology journalist and founder of NERDS.xyz

Brian Fagioli is a technology journalist and founder of NERDS.xyz. A former BetaNews writer, he has spent over a decade covering Linux, hardware, software, cybersecurity, and AI with a no nonsense approach for real nerds.

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