Shares in International Business Machines Corp (NYSE:IBM) jumped 6.4% on Thursday, helping pull the Dow Jones out of early losses after the White House agreed to support a new quantum chip manufacturing venture with $1 billion of funding.
The Department of Commerce confirmed it had signed a letter of intent to back the creation of Anderon, a standalone company that will build what it described as America’s first “pure-play quantum foundry”. IBM will match the government funding with a further $1 billion cash investment.
Based in Albany, New York, the foundry will manufacture quantum wafers used in advanced computing systems.
Quantum computers use quantum mechanics to process information in ways that are far faster than traditional machines for some tasks, including materials research, financial modelling and cybersecurity.
The agreement is part of the US CHIPS programme, which aims to expand domestic semiconductor manufacturing and reduce reliance on overseas supply chains.
Howard Lutnick, the US commerce secretary, said: “These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities.”
Arvind Krishna, IBM chairman and chief executive, said: “With the support of the US Department of Commerce, Anderon will be well-positioned to fuel America's fast-growing quantum technology industry.”
IBM pointed to research that suggests the adoption of quantum computing will generate create $450-850 billion of economic value globally, sustaining a $90 billion to $170 billion market for hardware and software providers by 2040.