NEC has ceased the development of quantum computers, ending a program that began in the 1990s. The company decided to stop the work in late March 2026, citing economic inefficiency. NEC concluded that creating a commercially successful quantum computer requires too much time and financial resources to provide a return on investment within a reasonable timeframe.
The company's specialized staff have reportedly moved to competitor Fujitsu. While NEC has not formally announced a complete withdrawal from the field, it intends to continue evaluating the practical application of quantum technologies in industry and implementing pilot projects with clients.
NEC is likely shifting its focus from building physical quantum hardware to developing algorithms and software for quantum systems. This allows the company to avoid the risks and costs associated with the construction of quantum processors and computing systems.
Historically, NEC was a pioneer in the field. In 1999, the company's physicists developed a superconducting circuit approach for solid-state qubits, which remains a popular method today. In 2003, NEC and the RIKEN institute achieved the world's first successful entanglement of two qubits.
In contrast, Fujitsu, which is absorbing the NEC talent, is expanding. In 2025, Fujitsu and RIKEN launched a 256-qubit superconducting quantum computer. The company plans to increase the system to over 1,000 qubits by 2026 and aims to develop a platform with over 10,000 qubits by the start of the 2030 fiscal year.