[DigitalToday reporter Jinju Hong] Japan's major IT company NEC has been reported to have halted development of a working quantum computer.

On Sept. 8 local time, Japanese outlet ITmedia reported that NEC is believed to have stopped hardware development at the end of March, with many hurdles to clear before practical use cited as a factor.

The key issue is business viability rather than the quantum computer hardware itself. NEC was reported to have judged that it would not be cost-effective to continue hardware development because a promising approach for practical use has yet to be decided and many challenges remain.

NEC is a company with strong symbolic significance in the quantum computer field. In 1999, NEC was the first in the world to implement superconducting qubits, seen as the foundation for quantum computer development. The superconducting approach has been regarded as the starting point for the line adopted by Google and IBM. If NEC steps away from working hardware development, it becomes a case of a company that secured leading technology adjusting its strategy at the commercialisation stage.

The focus now is where NEC's business emphasis will shift. NEC is expected to concentrate on developing quantum computing technology that uses quantum mechanics to handle complex calculations, and on related services. That amounts to pivoting toward technology applications and services rather than continuing hardware competition. The outlet also reported that NEC will focus on developing quantum computing technology and services.

The decision also shows that the quantum computer industry remains in the early stages of standardisation. Without a clearly settled approach suitable for practical use, it is difficult to sustain large-scale hardware investment for long. NEC's choice of the end of March as the timing of the halt also aligns with such practical judgment. The outlet likewise cited the "heavy challenges toward practical use" as the reason for stopping.

In this trend, NEC's quantum business is increasingly likely to be reshaped toward applied technology and services rather than hardware manufacturing. It also became clear that while development of working quantum computer hardware has stopped, NEC is not abandoning development of quantum computing technology itself. As a result, attention will focus on what form of services NEC will use to continue its quantum technology business, and what impact the halt in hardware development will have on Japan's quantum computer industry strategy.