Tentative Translation

Strategy of Quantum
Future Industry Development
SummaryApril 2023
Secretariat of Science, Technologyand Innovation Policy, Cabinet OfficeStrategy of Quantum Future Industry Development○ The Vision of Quantum Future Society establishes the visions and goals to beachieved by quantum technology (QT)
○ This strategy summarizes the priority actions to realize the goals by making QTpractically-applied and industrialized○ This report is positioned as a "strategy that sets out a policy and action plan forthe practical application and industrialization of quantum technology"
ResearchVision

Quantum Technologyand Innovation Strategy

Established in January 2020
Revision of technology roadmap on April 2022

R&D Strategy for Quantum Technology

Vision ofQuantum Future Society
Established in April 2022
Strategy for social transformation
Future vision, targets, etc.

Industry

Strategy of Quantum
Future Industry Development

Established in April 2023
Practical application and industrialization strategy of quantum technology

Goals by 2030
Fostering quantum
10 million quantum Through quantum
technology, production unicorn companies
technology users
to create future markets
to 50 trillion Yenin Japan1

The direction of the industry and three perspectives○ Setting the direction of the industry to be aimed, also taking into account the 2030
targets of the Vision for Quantum Future Society○ Establish three perspectives for future practical and industrialization efforts of QT

Direction of the quantum industry (X to Quantum)
Participation, collaboration andco-creation of diverse industries
Town
planning

HealthMedicalcare

MaterialChemistry

Practical application andindustrialization of QT
Development and growthof start-up, venture andnew businesses

Goals by 2030

Manufacture
Logistics
Transportquantumtechnology

Global collaboration and deployment

Environment
EnergyAI
Telecommu-nicationsIndustrialization through industryacademia-government collaboration

Electronics
Semiconductor

Many industries can access andutilize quantum technology

・10 million quantum
technology users inJapan・Through quantum
technology, production
to 50 trillion Yen
・Fostering quantum
unicorn companies tocreate future markets

Three perspectives for making QT practical and industrialization
Collaboration

Participation, collaboration and cocreation of diverse industries, global
cooperation, industry-academiagovernment collaboration

Accessibility

Incubation

Realization of an environment for theuse of QT open to industry

Aggressive support of startup/venture and new businesscreation2

Challenges for practical application and industrialization, and basic policy○ The main challenges for the practical application and industrialization of QT○ Establish a basic response policy to the main issues

Main challenges for practical application and industrialization
Few effective use
cases for quantum
utilization

High hurdles toquantum
technology

Insufficientenvironment forstart-up and new
business creation

High business risk
due to uncertain
technologies andmarkets

Shortage ofindustrial humanresources (HR)■ Collaboration ■Accessibility ■Incubation+ Acceleration

Basic Response Policy
Support for building Improvement of theuser environmentuse cases
・Support for thecreation of attractive
use cases frommanagement
perspectives
・Establishment ofeffectiveness andperformanceindicators throughthe use of QT・Developing user
environment of
quantum computers,etc.
・Support to industry(education program,technical assistance)
・Providing info. for
new entrants

Business risk
response

・Development ofequipment shared byseveral companies
・Co-creation of multiple
companies, e.g.
common components
・Basic research support

Start-up creation

・Creation and supportof start-ups and newbusinesses
・Entrepreneurial HRs
development
・Pitch contest
・Ecosystem formation

Industrial HRdevelop
・Education programmes
for industry and otherHRs· Exchange and flow of
personnel between
industry, academia andgovernment
・Education programmes
for young people

Promote initiatives based on the Basic Response Policy.

3Efforts toward practical application and industrialization (1)Quantum computer[Software, development of user environment]
 Support for creation of appealing use case
 Investigation of performance indicators of QT from amanagement perspectives
 Wide use of domestically developed quantum computers Building a real-use environment to lead industrialization
 Quantum/classical hybrid computing environment[Hardware, infrastructure technology] Accelerate the development of domestic quantum computers Accumulation of operational experience and know-how
 Building a stable and robust supply chain (clarification ofnecessary devices, participation of many companies, study ofstrategies to secure parts, materials, and technologies)

Quantum security networks
 Creating appealing use cases
 Promoting the use of public authorities asanchor tenants/early adopters Support for development through test-bed
operation, accumulation of operational
and usage results and overseas expansion
 Building infrastructure for the authentication ofquantum cryptography communications
equipment Building a comprehensive quantum andclassical architecture.
 Enhancement of wide-area test beds
 Research and development of quantum
internet and roadmap study

Diverse user companies,
research institutes, etc.
Start-up
venture company

・Engagement,
collaboration andco-creation
・ Realization of theuse environment
・ Creation of startups, newbusinesses

Comprehensive
industrial support

Cutting-edge,
extensive basic
research

Quantum measurement andsensing/quantum materials

 Support for development andcommercialization of quantum sensing
technology to diverse industries
 Development of industry-academiagovernment consortia
 Creating an environment in which companies
can easily use and develop quantum sensing
 Support for the creation of use cases
 Promotion of integrated hardware and software
technology development and commercialization
 Establishment of a stable supply system forquantum materials

4Efforts towards practical application and industrialization (2)Innovation infrastructure[Global collaboration and development [Standardization, IPR, benchmark] Strategic standardization promotion by industry,of the quantum industry]

academia and government working together
 Support on global collaboration and development in
Set and provide benchmark indicators forthe public and private sectors
effectiveness and performance from management and Demonstration of services abroad (Europe, US, Asia,technical perspectivesetc.)
Strategic IPR in quantum technology innovation hubs
 Support for overseas development of start-ups
 International cooperation, dialogue, exchange at [Establish strategic supply chains]various levels of industry, academia and government
 Supply chain map based on consideration of critical[Development of infrastructure for the devices, components and materials
of development of common devices,
creation of start-ups, new businesses]  Consideration
etc. and use of general-purpose products, etc
 Matching support with financial institutions, incubation  Building a broad industrial ecosystem, including
providers, partner companies
identifying enterprises, including SMEs
 Young entrepreneurial human resource (HR)development of start-up leaders, HR matching[Platform strategy and co-creation
 M e c h a n i s m s fo r i d e n t i fy i n g a n d g e n e ra ti n g environment building]business ideas
Strategies to ensure common underlying[Developing industrial HR]

technologies (platform technologies) are required
irrespective of future technology methods
 Develop and secure HRs in user fields and business
Creation of systems and mechanisms for open
HRs in management, IP, law etc.
innovation in which multiple companies collaborate Provision of education programs based on
clarification of the skills required for each level, [Strengthening of quantum technology
certification systems, education for young people
 HR matching and development ecosystem between innovation hubs]
domestic and international industry, academia and • Global Research and Development Hub for Businessby Quantum-AI Technology (AIST) (enhanced)
government• Quantum Computation Pioneering Hub (RIKEN) (enhanced)[New partnership between industry, • Foundational Quantum Technology Centre (tentative name)and Quantum Life R&D Centre
academia and government](Institute of Quantum Science and Technology) (enhanced)
 Organizational partnership between the Quantum • Quantum Frontier Industry Development Hub (Tokai National
Te c h n o l o g y I n n o v a t i o n Hub a n d Q-STAR ( QUniversity Organization) (additional candidate)*The name of the hub is provisionalPartnership (tentative name))

5Strengthening Quantum Technology Innovation Hubs
Strengthen the Quantum Technology Innovation Hubs to strongly support the creationof new value in industry, such as the creation of new industries, productivity
improvements and solutions to social issues, by fusing and collaborating with various
industrial sectors and quantum technology, taking advantage of Japan's industrial strengths.
Global Research and Development Hub Enhancefor Business by Quantum-AI Technology(National Institute of Advanced
Industrial Science and Technology)

Quantum Computation
Pioneering Hub (RIKEN)

EnhanceCreation of a global development center on theindustrialization of quantum technology. Establishment ofa real-use computing environment for quantum-AI
hybrids and provision of an environment andservices to support use case creation, development,evaluation and prototyping of components, materials,
devices and integrated circuits.

Development of the Advanced Computing Centre,
which will provide a state-of-the-art
quantum/classical hybrid computing environment,
etc., linking quantum computers and Fugaku, etc., andthe exploitation of new industrial and scientific frontiers
using this environment.

Foundational Quantum Technology
Enhance
Centre (tentative name) andQuantum Life R&D Centre(National Institute for Quantum
Science and Technology)

Quantum Frontier Industry
AddDevelopment Hub(candidate)(Tokai National Higher
Education and Research System)
Developing technological and industrial frontiers
through the fusion of chemistry, materials andother fields, in which Japanese industry has strengths,
and quantum technology, creating new quantum
industries, and fostering human resources who will
be responsible for collaboration and fusion between
the fields of quantum x chemistry and materials.

R&D and industrial support for quantum technology
infrastructure, including the development of anenvironment in which industry can use, test andevaluate quantum materials, quantum sensing, etc., aswell as support for use and technology, and thedevelopment of technologies and devices that also utilize
optical science and technology.

Quantumsolutions(TohokuUniversity)

Quantummaterials(NIMS)

Quantum
Quantum
Quantum computer
SoftwareResearch
sensing
applications(Osaka(Tokyo Institute(University of Tokyoof Technology) University)
Business Alliance)*Names of strengthened and new sites are provisional.

Quantum
security(NICT)

Quantumtechnology
international
collaboration(OIST)

6(Ref.１) Perspectives on the practical-use and industrialization of QT
Collaboration

Accessibility

IncubationelectronicsICTQT

LaunchMarketing
Investment

materialPlanningIdea
chemistryhealth
medical care

 Creating an environment in which  Creation and support of start-ups,
 Creation of new value underuser companies in diverse fields
new businesses, etc., andparticipation, collaboration andcan use QT.
formation of venture ecosystems
co-creation of diverse industriesSupporttofacilitate
theuseofQT
by stimulating long-term and stable Support for the creation of(e.g. utilization support, technicalinvestment.
appealing use cases for usersupport, educational support, etc.)
 Formation of a comprehensive
companies
innovation infrastructure to create Strengthening global cooperation  Dissemination of information onadvantages and effectivenessand support start-ups, etc. (e.g.
and market development, and(performance,cost,convenience,
financial institution matching,industry-academia-governmentetc.) over existing technologies.
entrepreneurial human resource
collaboration, with a focus on thedevelopment, etc.)
global market.

7

(Ref. 2)

Image of the quantum future industry (Overview)

Industry-academia-government
collaboration

Global collaborationand development

Accessible environment
to quantum technology

Start-up creationand growth

Participation, collaboration andco-creation of diverse industries 8

(Ref. 3)

Image of the quantum future industry (detail)Industry-academiagovernment collaboration

Participation, collaboration and cocreation of diverse industries

Access to QT

Industry

Government

Academia• Proximity of academia and industry • Service creation and development• Organizational collaboration
through diverse user participation
between research hubs and• Hardware and system manufacturingindustry associations.
through participation and co-creation• Support for initiatives from research of a wide range of industries
to industrial applications

Global collaboration anddevelopment• Services for providing an environment
for the use of QT• Provision of educational services• Construction and utilization ofquantum/classical hybrids

Creation and growth ofstart-ups, etc.

Government

Entrepreneur

Enterprise

Investor• Aggressive global expansion• Cooperation with companies fromvolunteer countries• Ensuring an open-close strategy inIP

• Formation of venture ecosystems• Developing and securing entrepreneurs,managers and investors• Creation of new businesses and carveout ventures in large companies

9(Ref. 4)

Overall Quantum Technology Innovation Hubs

EnhanceQuantum Computation
Pioneering Hub(tentative name)(RIKEN)

Global Research and Development Hubfor Business by Quantum-AI
Technology (tentative name)(National Institute of Advanced
Industrial Science and Technology)

Building a state-of-the-art
quantum/classical hybrid computing
environment.

Comprehensive support
to industry

Quantum Software Research(Osaka University)

Quantum sensor(Tokyo Institute of Technology)

Quantum Technology
Innovation Hubs

EnhanceFoundational Quantum Technology
Centre (tentative name) andQuantum Life R&D Centre (QuantumScience and Technology Agency)

Quantum computer applications(University of Tokyo Enterprise Alliance)

Quantum security

Integrated promotion by industry,
academia and government
from basic research
to social implementation(National Institute of Informationand Communications Technology)

Quantum-based technology
R&D and industry support

Quantum materials(National Institutefor Materials Science)

Head quarters:
RIKEN

Quantum Technology
International Collaboration Hub(Okinawa Institute of Science andTechnology).

Enhance

Quantum solutions
Add(Tohoku University)(candidate)

Quantum Frontier Industry
Development Hub (tentative name)(Tokai National Higher
Education and Research System)

By integrating quantum, chemistry,materials, information, etc., exploring
technological and industrial frontiers

10(Annex 1)

Vision for Quantum
Future Society（22 April 2022.)
Government ofJapan
https://www8.cao.go.jp/cstp/english/
outline_vision.pdf

11Introduction

Vision of Quantum Future SocietyQuantum technology (QT) has been rapidly advancing and its influence onsociety has been increasing.
QT is becoming extremely important for economic security.
In order to realize the transformation of society as a whole to create growth
opportunities for Japanese industry, and to solve social issues such as carbon
neutrality, vision of future society through QT and strategies to realize this visionwere discussed.
Quantum Technology andVision of Quantum Future SocietySocioeconomic(April 2022)
Innovation Strategy (January 2020)
Transformation(Social application of QT)(R&D of QT)

Changes in the environment surrounding quantum technology, etc.
Intensifying international
competition in Quantumindustry

Rapid progress in DX
caused by the CoronadisasterDevelopment of basic technologies
supporting quantum computers

Contribution to a carbon
neutral society

Importance of quantum technology
for economic security.

GoogleIncreased international
competition!

<Benchmark comparison>.
Google (US) (published May 2021)
1,000 logical qubits in 2029
IonQ (US) (published Dec 2020)
1,024 logical qubits in 2028
Japan (Moonshot) (published 1 Jan 2020)
Tens to 100s of logical qubits by 2030

Three basic concepts of this visionCreate opportunities for industry to grow and solve social challenges by incorporating QT into
the overall socioeconomic system and integrating it with conventional (classical) technology
systems (hybrids)
Promotion of the use of QT by development of testbeds, etc.
Creation and revitalization of industries and startups using QT

12Goals by 2030 for Vision of Future Society
10 million quantum technology
users in Japan

Through quantum technology,
production to 50 trillion YenFostering quantum unicorn companies
to create future markets

1313