Quantum computing is one of the strongest arguments for targeted U.S. industrial policy, but broader government investments in tech companies require clear rules. This conclusion was drawn by The Economist columnists Joshua Zoffer and Chris Miller .
According to the authors, in other areas like drones, batteries, or rare earth metal processing, the government can support the market through procurement, regulation, or assistance to allied suppliers. In quantum computing, the situation is different: there are few commercial products, no dominant architecture, and production chains are not yet established. Therefore, early government intervention, according to Zoffer and Miller, may be justified before dependencies solidify.
The columnists linked quantum technologies to national security: scalable quantum computers could potentially threaten public-key cryptography, and related developments are applicable in sensors, navigation, communication, and scientific calculations. They described the sector as a rare case where direct government investment may be justified, but emphasized that such support should not become a universal model.
Structure of the U.S. Commerce Department Program
On May 21, the U.S. Department of Commerce announced the signing of nine letters of intent worth $2.013 billion under the CHIPS and Science Act. The funds are intended for two quantum factories and seven companies developing quantum computing.
One of the recipients is IBM, which will receive $1 billion to create a subsidiary for producing quantum-class superconducting wafers. GlobalFoundries is set to receive $375 million for a secure quantum factory for multiple quantum computing approaches.
The list also includes:
- Atom Computing ($100 million);
- D-Wave ($100 million);
- Infleqtion ($100 million);
- PsiQuantum ($100 million);
- Quantinuum ($100 million);
- Rigetti (up to $100 million);
- Diraq (up to $38 million).
A condition of support is a minority non-controlling government stake in each company. This condition was not acceptable to Google, which declined to participate in the program. The corporation believed that the requirements could slow the path to creating a useful quantum computer.
Three Principles for Government Investments
Zoffer and Miller proposed three principles for direct government investments in tech companies:
- Intervene only when there is a clear need for national security or significant economic vulnerability that the market cannot address on its own.
- Do not invest where a ready-made product can be purchased. In the case of quantum computing, this approach does not yet work, as the necessary products do not exist in industrial form.
- Support should maintain a distance between the government and business. The authors believe taxpayers should benefit if supported companies grow, but direct stock ownership creates political risks.
One of the tools they mentioned is warrants. This mechanism could give the government the right to participate in the growth of company value without full control over them.
Previously, U.S. President Donald Trump signed an order for the accelerated transition of federal systems to post-quantum cryptography. Along with accompanying information bulletins, the documents outline a strategy aimed at protecting the country from advanced cryptographic attacks while simultaneously stimulating commercial and scientific innovations.
Experts supported the direction but warned: for Bitcoin, the problem is more complex, as a decentralized network cannot be updated by government decree.
In June, the U.S. Department of Defense’s Defense Innovation Unit launched the Farseer program to develop quantum sensors and portable atomic clocks for intelligence, surveillance, and reconnaissance. The initiative could receive up to $200 million over the next year.
