Quantum Frenzy: The Race is on in Asia Pacific
Despite the hype, full-scale quantum computing remains a distant prospect—no matter what the headlines say (even ours!). While breakthroughs continue, the race is far from settled. Multiple approaches are in play, and whether a single architecture dominates, or a mix of platforms co-exist, each offering distinct advantages, is still an open question.
For investors, the quantum sector is entering a crucial phase. Many big investment firms and strategic players are now placing their second round of bets on the technologies they believe will ultimately win out. But another critical question is how to make money before full-scale quantum arrives.
Asia Pacific Emerges as a Quantum Innovation Powerhouse
The Asia-Pacific region is fast emerging as a powerhouse in quantum research, fuelled by a combination of government investment and deep corporate partnerships. Take for example the work being done at Sydney University’s Quantum Lab which now features in Microsoft’s quantum ambitions. The Lab’s researchers have been instrumental in advancing topological qubit technology, a critical component of Microsoft’s new Majorana One chip.
Aussie, Aussie, Aussie
Australia’s quantum capabilities are not simply of academic interest. Quantum computers, which have the potential to revolutionise fields like medicine and finance, are extremely sensitive to environmental disturbances, leading to frequent errors. Sydney-based Q-CTRL develops software that stabilises these systems, reducing errors and enhancing performance – as an analogy, think of how noise-cancelling headphones block unwanted sounds to deliver clear audio.
In October 2024, Q-CTRL secured an additional $59m in funding, bringing the company’s total Series B investment round to $113m. This round was led by our global partner GP Bullhound, with participation from investors including Alpha Edison, Lockheed Martin Ventures, NTT Finance, Salus Ventures, and TISI. The funds are intended to further develop Q-CTRL's quantum infrastructure software and expand its real-world applications across various industries.
Then there’s Canberra-based QuintessenceLabs that is focused on quantum security. Its solutions, including quantum key distribution and quantum random number generation, aim to harden data security against future quantum-enabled cyber threats. As quantum computers inch closer to breaking conventional encryption, startups like this are preparing enterprises for a post-quantum security landscape.
Meanwhile, Sydney-based quantum computing company develops scalable quantum processors using silicon quantum dot technology. The company’s approach leverages existing CMOS (Complementary Metal-Oxide-Semiconductor) manufacturing processes, aiming to integrate quantum computing capabilities into standard silicon chips. Founded in 2022 by Andrew Dzurak, the company secured a $20m Series A funding round led by Allectus Capital. This year, Diraq extended that round with a $15m Series A-2 investment led by Quantonation, reinforcing its push toward fault-tolerant quantum computing.
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Canberra Dives in the Deep End
Then there’s the Albanese Government’s stunning/shocking intervention in April 2024, a nearly $1bn joint Federal/State investment in US-based company PsiQuantum, aimed at building the world’s first fault-tolerant quantum computer in Brisbane as part of its Future Made in Australia agenda.
Supporters hailed the move as a visionary bid to position Australia as a quantum leader, while critics highlight concerns over procedural irregularities favouring PsiQuantum over local competitors like Silicon Quantum Computing; unproven technical viability; economic nationalism; and disproportionate risk concentration, with the investment representing 22 years' worth of typical quantum research funding now hinging on a single unproven platform.
While the deal strengthens AUKUS tech ties and aims to create 400 jobs, detractors argue it prioritises Silicon Valley-style "moonshot" gambles over sustainable support for homegrown innovation, with China dismissing it as a reactive move against its own quantum advances. Pragmatic Aussie business journalist Terry McCrann called it “Theranos-level wishful thinking,” citing unproven photon fidelity rates.
Japan
Japan is emerging as another major Quantum player, leveraging its industrial and academic strength to push superconducting qubit research forward.
RIKEN, in collaboration with Fujitsu, is integrating quantum computing into high-performance computing (HPC) stacks, signalling a concerted effort to create practical enterprise applications. Then there’s Mitsui and Quantinuum who have entered into a strategic partnership to deliver quantum computing solutions across Japan and the Asia-Pacific region. This collaboration aims to accelerate the adoption of quantum technologies in various industries.
Singapore
As always, Singapore is carving out its niche. The Centre for Quantum Technologies (CQT) has positioned itself at the forefront of quantum communication and cryptography, developing quantum-safe cybersecurity solutions in collaboration with industry partners.
As the threat landscape evolves, quantum-secure encryption is shifting from theoretical to mission-critical. Horizon Quantum Computing aims to simplify quantum programming, making it accessible to more developers. Entropica Labs is blending quantum computing with machine learning to tackle complex biological problems, including drug discovery and genomics.
Beyond software, Singaporean startups are making big bets on quantum communications. SpeQtral is developing satellite-based quantum communication systems, positioning itself at the intersection of quantum security and global telecommunications. And Atomionics is building quantum sensors for precision navigation and resource exploration, potentially disrupting industries reliant on geophysical data.
China
In China, quantum research is a national priority. The Hefei Innovation Cluster, backed by billions in state funding, is making rapid progress in quantum networking and secure communications.
China has also announced the establishment of a government-backed fund aiming to mobilise approximately $138 bn to support technology startups, including those in quantum computing. These are seriously big numbers, which gives you some sense of the size of the prize.
India
Bengaluru (Bangalore)-based QNu Labs playing the cybersecurity game, working on quantum-safe encryption. Its focus is protecting data transmission from emerging threats that will render traditional encryption obsolete.
In the same town, QpiAI raised $6.5m in mid- 2024 to combine quantum computing with AI to crack complex optimisation problems.
Then there’s Bhilai-based BosonQ Psi, which raised $3m in seed funding in December 2024. It takes a different approach—building quantum simulation software for engineering where the goal is to create accurate and efficient modelling in aerospace and automotive industries, where traditional simulation methods fall short.
Applications
Quantum sensing is a good example of an area where there are likely to be tangible commercial applications well before universal quantum computers materialise. Key players here include Quantum Brilliance, Advanced Navigation, and Q-CTRL, all of which are advancing technology that can operate at room temperature.
Defence primes are paying close attention, given the broad military and intelligence applications of quantum sensing. Smaller, room-temperature quantum devices, like those developed by Quantum Brilliance, are particularly relevant in this domain. Defence contractors are highly interested in quantum sensing because it offers unprecedented precision and reliability for critical military and intelligence applications.
Investors are Back
The successes these regional firms are having raising cash suggests the sector is back in favour with investors. After a retreat earlier in the decade —part of the wider tech slowdown – quantum investments are now reaching new heights, and at face value the deal size has increased.
Indeed, Crunchbase reports 2024 funding of $1.5 bn, almost doubled that of 2023. However, beware the headlines — this figure is distorted by the Australian Government’s large investment in PsiQuantum.
Regardless of how you cut the numbers, quantum computing is no longer just a physics experiment—it is starting to factor into long-term corporate strategy. The timeline for full-scale deployment may still be five to ten years out, but the real competitive advantage will go to those who start building expertise and partnerships today. The question isn’t whether quantum will reshape industries. It’s how fast—and who will be ready when it does.