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  • šŸ”µ The Quantum Insider Weekly | UK Invests Ā£500 Million. And More News.

šŸ”µ The Quantum Insider Weekly | UK Invests Ā£500 Million. And More News.

FROM THE EDITOR.

Momentum in quantum tech isn’t just about funding and it’s not about the number of zeroes — it’s about follow-through.

This week, the UK government put a firm number on the table: over Ā£500 million (that’s roughly $672 million USD) earmarked for quantum technologies over the next four years.

While past governments floated larger, longer-term figures, this appears to be the first binding pledge under the new Labour leadership — and it comes with a clear message: quantum isn’t fringe. It’s core to the UK’s future economic competitiveness and national security strategy, joining AI and green energy in a trio of technologies viewed as too important to cede to others.

The funding will support hardware development, research environments, and public-private testbeds, building on earlier efforts like the National Quantum Computing Centre and regional innovation hubs. In an era where foreign acquisitions of British quantum firms have sparked concern, this investment also doubles as a line in the sand — a statement that the UK intends to shape the rules, not just play by them.

Across the Atlantic, quantum networking startup Qunnect closed a $10 million Series A extension — led by Airbus Ventures and joined by Cisco Investments and Quantonation. It’s an eye-catching syndicate and a sign that institutional capital is starting to view quantum networking as a near-term opportunity rather than a far-off bet.

Qunnect’s focus — developing quantum-secure network infrastructure — speaks directly to the growing concern over post-quantum cybersecurity. With Cisco and Airbus now in its corner, the company is well-positioned to bridge quantum’s promise with practical deployment.

More on both stories below.

Enjoy your weekend — and keep an eye on the signal.

— Matt, Chief Content Officer at The Quantum Insider

INSIDER BRIEF.

Xanadu has unveiled a $10M advanced photonic packaging facility in Toronto - the first of its kind in Canada. Designed to manufacture ultra-low loss quantum components domestically, the facility strengthens Canada’s quantum supply chain and supports the country’s ambitions in fault-tolerant quantum tech. Beyond Xanadu’s own needs, the space is open to startups, universities, and industry players, backed by the Strategic Innovation Fund.

IBM and Japan’s RIKEN have launched the first IBM Quantum System Two outside the U.S., co-located with the Fugaku supercomputer. Featuring IBM’s new 156-qubit Heron processor, the system delivers 10x faster circuit operations and dramatically lower error rates. This hybrid setup is already modeling complex molecules and marks a step forward in practical quantum-classical workflows, blending cutting-edge physics with serious computational muscle.

The UK government is committing over Ā£500M to quantum computing over the next four years, aiming to boost national security and economic resilience. The investment revives and refines earlier efforts, including regional hubs and the National Quantum Computing Centre, amid rising global competition. As concerns grow over foreign control of British quantum startups, the funding signals a renewed focus on sovereign tech leadership. — Alan Kanapin, Analyst at The Quantum Insider

The Research Rundown

This week, fault-tolerant quantum computing was top of mind with three advances. Quantinuum made headlines with what it calls the final missing piece: a universal, fault-tolerant gate set that can reliably correct errors while performing any quantum operation. Using two separate studies, the company demonstrated ā€œbreak-evenā€ logic gates — where error-corrected operations now outperform the physical ones — a development long regarded as essential for scalable, industrial-grade quantum computing.

That same theme of reducing the overhead and complexity of fault tolerance echoed in new work out of Japan. Researchers at Osaka University detailed a ā€œlevel-zeroā€ magic state distillation technique that notably cuts resource requirements. By operating directly at the physical qubit layer, they showed in simulations that overhead can be slashed by dozens of times compared to conventional protocols which is a promising shortcut for getting fault-tolerant quantum systems off the ground faster.

Finally, a third study demonstrated sustained rounds of error correction and logical operations on a neutral-atom quantum processor. The team showed multiple cycles of surface-code correction, teleportation, and logic gates while managing qubit loss and using machine learning to decode errors in real time. While performance still lags faster superconducting systems, the work shows real traction toward deep-circuit computation on a neutral-atom architecture. — Cierra Choucair, Journalist & Analyst at The Quantum Insider

Want more research insights? Get them delivered straight to your inbox Monday, Wednesday, and Friday with The Daily Qubit. Subscribe below or use the link to update preferences at the end of this email. šŸ‘‡ļø

āž”ļø The UK government has announced a Ā£500 million ($672 million USD) quantum computing investment over four years, reaffirming its ambition to lead in a sector seen as vital to national security and economic competitiveness.

āž”ļø The funding will support hardware development, application research, and testbeds — building on regional quantum hubs and the National Quantum Computing Centre.

āž”ļø The move follows rising concern over foreign acquisitions of UK-based quantum firms and aims to strengthen domestic ownership of critical quantum technologies.

āž”ļø Policymakers view quantum as a pillar of strategic tech — on par with AI and green energy — with potential to transform everything from healthcare diagnostics to cybersecurity.

Analyst Commentary

When governments change hands, continuity in science policy isn’t always a given. So it’s notable — and reassuring — that the UK’s new leadership is not just preserving momentum in quantum but actively doubling down.

This week’s Ā£500 million pledge may be smaller than the previous government's headline number, but it sends a clear signal: the UK isn’t backing away from quantum. It’s recalibrating — with an eye on sovereignty, industrial strength, and long-term resilience.

There’s context here that matters. In recent months, we’ve watched key British quantum firms — Oxford Ionics, Oxford Instruments’ quantum unit — sold to overseas buyers. That trend set off alarm bells in Whitehall and across the tech sector. What this new investment says is that the UK wants to keep more of that intellectual and economic value within its own borders.

But this isn’t just reactive. It’s strategic. The funding arrives with a broader review of tech priorities, reaffirming quantum’s place alongside AI and clean energy in the UK’s innovation portfolio. And it’s not just about quantum computing — sensing, imaging, and secure communications are part of the picture too. Trials tracking trains underground and detecting early-stage dementia may seem niche, but they point to real-world, near-term wins.

One of the most striking features of the UK’s move is its framing. This isn’t just R&D — it’s industrial policy. It’s a bet on capabilities that will shape future competitiveness, defense readiness, and economic autonomy. That kind of framing puts quantum where it belongs: not in the lab, but in the national interest.

We also see echoes of a broader trend. From the G7’s quantum alignment last week to Germany’s expanded investments and the U.S. CHIPS and Science Act, the world’s major economies are converging on the same idea — quantum leadership is now a geopolitical objective.

What the UK is doing may not be the biggest spend. But it’s timely, targeted, and grounded in both opportunity and risk. If the money goes where the ambition is — toward scalable hardware, strategic applications, and a resilient supply chain — then this could be the blueprint for mid-sized nations trying to punch above their weight in quantum.

The next test will be execution: can the UK convert this capital into commercial wins and secure its homegrown talent before it’s lured abroad? Time, and policy follow-through, will tell.

But for now, this is a strong step. Not just to stay in the quantum race — but to run it on British terms.

DATA SPOTLIGHT.

Physicists at the University of Oxford have set a new record for the accuracy of controlling a single quantum bit, achieving the lowest-ever error rate for a quantum logic operation—just 0.000015%, or one error in 6.7M operations. This record-breaking result represents nearly an order of magnitude improvement over the previous benchmark, set by the same research group a decade ago.

INDUSTRY HIGHLIGHTS.

šŸ‡ØšŸ‡¦ Canada has launched a government-wide roadmap to transition all non-classified federal IT systems to post-quantum cryptography by 2035, with phased deadlines starting in 2026 and high-priority systems migrating by 2031.

šŸ¤ Multiverse Computing has partnered with Quebec’s quantum platform PINQ² to bring its quantum-inspired AI compression technology, CompactifAI, to Canadian businesses, reducing model size by up to 80% and energy use by 50% while boosting inference speeds.

šŸ‡µšŸ‡± The EuroHPC Joint Undertaking has inaugurated its first operational quantum computer, PIAST-Q, in Poznań, Poland. Built on trapped-ion technology, the 20-qubit system integrates with supercomputers and will support research, industry, and public sector users across the continent by late 2025.

šŸ¢ Xanadu has opened Canada’s first advanced photonic packaging facility in Toronto, a $10 million site dedicated to manufacturing ultra-low loss quantum components for fault-tolerant photonic quantum computing.

šŸ‡ŗšŸ‡ø U.S. officials warned Congress that quantum computing poses an imminent threat to national security, urging swift adoption of post-quantum cryptography and modernization of federal IT systems. Experts emphasized that adversaries may already be collecting encrypted data to decrypt once quantum systems mature, and that delays in action risk leaving critical infrastructure exposed.

šŸ’°ļø A new economic report projects that quantum technologies could generate $8.5 billion in economic output and nearly 20,000 new jobs in South Carolina, with regional impacts reaching $32.9 billion. Conducted by SC Quantum and the University of South Carolina, the study links quantum adoption to a 5.7% productivity boost in key industries like manufacturing and logistics.

šŸ¤ Diraq and Emergence Quantum have demonstrated cryo-CMOS control electronics that operate at millikelvin temperatures without degrading silicon qubit performance, a development that enables more compact, scalable quantum processors.

šŸ’µ Qunnect has raised $10 million in an extended Series A round led by Airbus Ventures, with Cisco Investments and Quantonation joining to support the rollout of its room-temperature quantum networking products.

šŸ’¼ A new QED-C report finds that hands-on learning, mentorship, and flexible education pathways are essential to filling thousands of quantum jobs, with over 7,000 roles already open globally. The report calls for scalable experiential programs, clearer career guidance, and coordinated public-private investment to close skills gaps.

šŸ—ŗļø Quantum Art has released a roadmap to build a one-million physical qubit trapped-ion quantum computer by 2033, targeting quantum advantage with a 1,000-qubit system by 2027. Using innovations like multi-qubit gates, optical segmentation, and ultra-dense 2D layouts, the company plans to launch a 50-qubit Quantum-as-a-Service platform in 2025.

šŸ‡°šŸ‡· South Korea has designated quantum random number generation and low-power AI chip design for autonomous vehicles as national strategic technologies, granting companies like EYL and Boss Semiconductor access to state-backed support.

🤠 Texas has enacted a new law establishing the Texas Quantum Initiative to position the state as a national leader in quantum computing, networking, and sensing. The legislation creates an advisory committee, strategic planning process, and grant fund to support research, workforce training, and quantum manufacturing.

šŸ–„ļø IBM and RIKEN have launched the first IBM Quantum System Two outside the U.S., co-located with Japan’s Fugaku supercomputer for hybrid quantum-classical computing. Powered by IBM’s 156-qubit Heron processor, with 10Ɨ improvements in error rate and speed over previous generations, the system enables low-latency workflows.

šŸ« QNu Labs has launched QNu Academy to train a global workforce in quantum cybersecurity, offering hands-on and academic programs in QKD, QRNG, and PQC with support from institutions like IITs and DRDO.

šŸ”— The EU-funded ELENA project has established the first fully European supply chain for lithium niobate on insulator (LNOI) substrates, enabling scalable production of high-performance photonic integrated circuits. The initiative launched CCRAFT, Europe’s first open-access TFLN chip foundry, and validated its platform with demonstrator chips for quantum, telecom, space, and sensing applications.

EVENTS.

Now -July 30 -- Womanium & WISER QUANTUM PROGRAM 2025. The 2025 Theme: Quantum solvers: algorithms for the world's hardest problems will be held Mondays & Wednesdays from 10:30 -12:00 ET. Register here.

June 24-26 -- Quantum Korea 2025 will take place in Seoul, South Korea, bringing together global researchers, companies, and policymakers to explore emerging trends across the quantum ecosystem.

June 27-29 -- IYQ Global Event: Communicating Quantum Science and Technology to Public will be held at Yonsei University in Seoul, Korea with the main event on June 28, bringing together global experts to explore challenges and strategies in public communication of quantum technologies.

Aug. 31– Sept. 5 -- IEEE Quantum Week 2025 will be held in Albuquerque, New Mexico.

Sept. 16-18 -- Quantum World Congress 2025 will be held at Capital One Hall in Greater Washington. The event is a chance for the world’s quantum ecosystem to come together and bring a quantum-ready future into focus.

Sept. 24-25 -- Q2B25 Paris at CitĆ© des Sciences et de l’Industrie, Paris, France.

Sept. 29-Oct. 1 -- Quantum.Tech Europe is taking place in Rotterdam, Netherlands. The event will bring together the whole quantum supply chain to drive forward the commercial applications of Quantum Technologies.

Oct. 8 -- The Fifth Anniversary of The City Quantum & AI Summit will take place at the Mansion House in the City of London this year with the subtitle Race for Growth.

Oct. 13-17 -- Quantum Reference Frames 2025 will bring together leading experts on quantum reference frames and the many related subjects in the first focused event in the new era of quantum frame covariance. QRF 2025 is co-funded by the Quantum Information Structure of Spacetime consortium.

Oct. 19-21 -- Q+AI will be held in New York City. This event will uncover the coming wave of Quantum + AI, include 50+ speakers, daily mentoring sessions and 16 sessions, one continuous track.

Nov. 10-12 -- European Quantum Technologies Conference 2025 will be held at Ć˜ksnehallen, Copenhagen, Denmark.

Dec. 1-4 -- QUEST-IS 2025 Quantum Engineering Sciences and Technologies for Industry and Services From Quantum Engineering to Applications for Citizens. EDF Lab, Paris-Saclay, France.