Shanghai is intensifying its efforts to expand further into quantum computing By establishing an specialized industrial center within the city, uniting several firms to speed up the growth of cutting-edge technology and rival other Chinese cities that already possess well-developed quantum industry networks.
A new incubation area dedicated to the future of quantum computing was unveiled on Tuesday in the Xuhui district of Shanghai, drawing an early group of 26 companies specializing in quantum technology. According to a report published by the state-funded Jiefang Daily, this zone will provide support through access to resources, skilled personnel, and financial incentives to help transition innovations from lab settings into a complete commercial industry focused on quantum computing.
The incubation area will also offer as much as 100 million yuan (US$14.73 million) to support basic research, technological advancements, and infrastructure development. Companies working on their initial products could receive up to 20 million yuan, along with computational resource discounts aimed at reducing firms’ expenses related to computation and testing, according to a report from Jiefang Daily.
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Shanghai intend to leverage the industrial center to enhance its standing in quantum computing by combining academic research centers, new companies, and end-use sectors, ranging from medical science to financial services, as stated in the report.
The city would also anticipate the "deep integration" of artificial intelligence and quantum technologies could speed up technological development, practical test situations, and the conversion of research findings into marketable products.
The Xuhui area of Shanghai, home to the city's leading artificial intelligence research centers such as StepFun AI, the Shanghai Artificial Intelligence Lab, and the Hong Kong-based company MiniMax, is considered an essential hub for facilitating this integration.
Authorities plan to increase the number of quantum companies in Xuhui district beyond 100 within the next three years, aiming for a total valuation reaching tens of billions of yuan, according to Jiefang Daily.
The decision follows China's designation of quantum technology as a key national strategic focus. 15th five-year plan - A national plan for economic and social progress spanning from 2026 to 2030 – as municipal authorities throughout China strive to create quantum technology hubs.
Supported by top universities and research organizations, Beijing introduced a policy in 2023 aimed at fostering emerging industries, such as quantum computing, with prominent startups like QBoson exploring the use of this technology in cancer studies and pharmaceutical advancements.
The city of Hefei, which serves as the capital of Anhui Province in eastern China, houses more than 90 companies related to quantum technology at the end of last year, making up one-third of the nation's overall count.
Shenzhen which listed quantum computing as one of its eight key sectors, along with photonic computing, blockchain, space technology, and neuroscience, among others, has recently achieved its first quantum-related startup valued at over $1 billion. SpinQ collected a total of 1 billion Chinese yuan (equivalent to US$147.32 million) during its most recent financing stage.
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