NEC, a major Japanese technology company, has reportedly ended its quantum hardware development after nearly 30 years of research into superconducting circuits and solid-state qubit technology. This decision marks a shift in focus for the company, which now plans to concentrate on quantum applications rather than the expensive process of building physical quantum computers. Several engineers involved in NEC’s quantum research have moved to Fujitsu, a rival firm, to continue their work. This transition reflects a broader trend in the industry, where some companies are choosing to focus on quantum software and applications rather than the hardware itself. NEC once held the top spot in global semiconductor sales in 1990, outpacing companies like Hitachi, Toshiba, Fujitsu, Motorola, and Intel. However, Intel eventually overtook NEC as the demand for personal computer processors surged. NEC’s breakthrough in superconducting qubits in 1999 was a major milestone in quantum computing, as it was the first solid-state qubit ever created. This innovation laid the foundation for modern quantum processors, which are now used by companies like Google and IBM. Despite this early lead, NEC has since shifted its focus away from semiconductor manufacturing. NEC’s exit from the semiconductor business was not sudden but rather a gradual process that spanned about a decade. The company phased out its DRAM memory operations in 1999, merging them into a joint venture that later became Elpida. In 2002, NEC spun off its remaining chip units into a new company, which eventually evolved into Renesas Electronics, a major global chipmaker today. This restructuring allowed NEC to focus on other areas of technology and services, which now form the core of its business, including IT services, enterprise systems, aerospace, defense, telecom infrastructure, AI, and security. NEC has not officially declared a complete exit from quantum computing research, stating that it will continue to explore practical applications and commercialization opportunities related to quantum technology. However, developing quantum hardware remains a costly and long-term endeavor, with returns on investment often taking years to materialize. Meanwhile, Fujitsu, in partnership with Riken, has already launched a quantum computer with 256 superconducting qubits and aims to build a system with over 1,000 qubits by 2026. Looking further ahead, Fujitsu has set a goal of creating quantum computers with more than 10,000 qubits by fiscal 2030.