Amazon Unveils Quantum Chip, Aiming to Shave Years off Development Time 

Amazon Web Services "Ocelot" quantum computing chip is seen at the company's California quantum facility, in Pasadena, California, US, in an undated handout photo provided on February 26, 2025. (Courtesy Amazon Web Services/Handout via Reuters)
Amazon Web Services "Ocelot" quantum computing chip is seen at the company's California quantum facility, in Pasadena, California, US, in an undated handout photo provided on February 26, 2025. (Courtesy Amazon Web Services/Handout via Reuters)
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Amazon Unveils Quantum Chip, Aiming to Shave Years off Development Time 

Amazon Web Services "Ocelot" quantum computing chip is seen at the company's California quantum facility, in Pasadena, California, US, in an undated handout photo provided on February 26, 2025. (Courtesy Amazon Web Services/Handout via Reuters)
Amazon Web Services "Ocelot" quantum computing chip is seen at the company's California quantum facility, in Pasadena, California, US, in an undated handout photo provided on February 26, 2025. (Courtesy Amazon Web Services/Handout via Reuters)

Amazon Web Services on Thursday showed a quantum computing chip with new technology that it hopes will shave as much as five years off its effort to build a commercially useful quantum computer.

The chip, named Ocelot, is a prototype that has only a tiny fraction of the computing power needed to create a useful machine. But like its tech rivals, AWS, which is Amazon.com's cloud computing unit, believes it has finally hit on a technology that can be scaled up into a working machine, though it has not yet set a date for when it will reach that point.

The AWS announcement, which coincides with the publication of a peer-reviewed paper in the scientific journal Nature, comes as quantum computing is sweeping through the technology world, with Alphabet's Google, Microsoft and startup PsiQuantum all announcing advances in recent months.

Quantum computers hold the promise of carrying out computations that would take conventional computers millions of years and could help scientists develop new materials such as batteries and new drugs. But a fundamental building block of quantum computers called a qubit is fast but finicky and prone to errors.

Scientists established in the 1990s that some of a quantum computer's qubits could be dedicated to correcting those errors, and the years since then have been spent searching for ways to construct physical qubits so that enough "logical" qubits are left over to do useful computing work.

The standard industry thinking has been that a chip will need about a million physical qubits to yield a useful number of logical qubits.

But AWS said it had built a prototype chip that uses only nine physical qubits to yield one working logical qubit, thanks to the use of what is known as a "cat" qubit, so named for physicist Erwin Schrodinger's famous thought experiment to illustrate principles of quantum mechanics in which an unlucky cat in a box is both dead and alive at the same time.

Oskar Painter, AWS director of quantum hardware, said the AWS approach could one day yield useful computers with only 100,000 qubits rather than a million.

"It should allow us to provide between five and 10 times lower numbers of physical qubits to implement the error correction in a fully scaled machine. So that's the real benefit," Painter told Reuters.

Painter said that the current chip was constructed using standard techniques borrowed from the chip industry and a material called tantalum, but that AWS and partners hope to customize those techniques further.

"That's where I think there's going to be a huge amount of innovation and that will be the thing that could really reel in timelines for development. If we make improvements at the materials and processing level, this will make the underlying technology just much simpler," Painter said.



US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.