Archer Materials Ltd (ASX:AXE, OTC:ARRXF) has reached its most significant early-stage commercialisation milestone with the granting of a US patent for its 12CQ quantum computing chip.
The patent protects AXE’s 12CQ chip technology IP and gives it the potential to work with quantum computing partners in the US – considered to be the dominant force driving innovation in the semiconductor and computing industries.
The company is now the only ASX-listed company with a patent portfolio protecting qubit process chip technology in the semiconductor industry, and one of very few players on the world stage.
Shares higher
Investors reacted strongly to the news, driving shares as much as 29.2% higher to A$2.61, up from A$1.64 at market close on September 16, while Archer's market cap before opening today was approximately A$460 million.
“Archer’s 12CQ quantum computing chip IP is now protected in the US. The company has achieved a major early-stage commercialisation milestone with the granting of the US Patent,” Archer CEO Mohammad Choucair said.
“The 12CQ chip Archer is developing is an entirely new technology in the semiconductor industry that could potentially allow for the future operation of practical quantum computing devices."
Archer is a materials technology company with a focus on developing and integrating materials in quantum computing, biotechnology and reliable energy. As demonstrated by its patent portfolio, Archer has strong intellectual property, world-class in-house expertise, access to Tier 1 development infrastructure and a unique materials inventory.
Quantum computing market growing
This patent will allow AXE to begin commercialisation of its 12CQ chip technology in the US, a critical market as the world’s largest economy and a significant step in the company’s efforts to access global markets.
The US is a leader in digital legal framework and incentivises long-term investment in research, innovation and invention, a fertile environment in which to grow Archer’s semiconductor market share.
Quantum computing is a rapidly expanding market, with Research Dive predicting significant revenue of US$667.3 million, with CAGR of 30% between 2020-2027. This growth is considerable, as the market size was just US$88.2 million in 2019.
More patents to come
“Most of the investments, R&D, innovation and commercialisation in quantum computing takes place in, or originates from, the US. At the core of this thriving innovation ecosystem are patents and the accompanying IP rights, the CEO said.
“Archer is one of few companies with a patent portfolio protecting quantum computing chip technology and one with a unique global competitive advantage.
“We continue to work through the patent application processes related to the 12CQ chip in Europe, Australia and Hong Kong.”
Key investment priorities
The US has announced that quantum technology and the semiconductor industry are key priorities of investment in the US for its global technology leadership plans.
As such, the US recently entered into a trilateral security partnership with Australia and the UK called ‘AUKUS’, with a focus that includes quantum technologies.
In the National Quantum Initiative Act of 2018, the US set out its 10-year roadmap to accelerate the development of quantum information science and technology applications.
In April, the Innovation and Competition Act (ICA) was introduced to Congress which, if passed into law, will establish a Directorate for Technology and Innovation in the National Science Foundation and proposes to invest US$250 billion to various science and technology fields.
If the ICA is passed, it will channel US$52 billion into the USA’s domestic semiconductor industry and a further US$120 billion for investment in advanced technology, including quantum computing.
Archer’s American patent has positioned the company to take advantage of the US’s research and development push, forecasting potential government investiture in the industry.