After Intel, IBM gets $1 billion package from Trump government as it establishes a new business

IBM is expected to receive $1 billion from the US government. According to a report by the Wall Street Journal, this comes as part of the Trump administration's broader $2 billion funding package for quantum computing companies, while establishing a new business focused on manufacturing quantum chips in the US. The deal follows the administration’s earlier move to take an equity stake in Intel and signals continued government investment in strategic technology sectors.

The report claims that funding will come through the 2022 CHIPS and Science Act and includes minority equity stakes by the US government in participating companies. IBM said it will invest an additional $1 billion of its own capital to build what it describes as the country’s first dedicated quantum chip manufacturing facility. The company’s new quantum-focused business, named Anderon, will be based in New Albany, New York.

The planned investment is part of a wider effort by the US Commerce Department to strengthen domestic supply chains and accelerate development in quantum computing, an area viewed as important for scientific research, artificial intelligence (AI) and national security applications.

IBM and other quantum computing companies getting US backing

Apart from IBM, chip manufacturer GlobalFoundries is expected to receive $375 million to build facilities producing components for quantum systems. Other recipients include D-Wave Quantum, Rigetti Computing, Infleqtion, Atom Computing, PsiQuantum, Quantinuum and Australia-based Diraq, with funding ranging from $38 million to $100 million.

The deals have not yet been finalised. However, shares of publicly traded companies involved in the programme rose in premarket trading following the announcement. IBM and GlobalFoundries gained around 7%, while smaller quantum firms recorded sharper increases.

The quantum funding package continues a pattern of government investments tied to ownership stakes in strategic industries. Earlier, the Trump administration acquired a nearly 10% stake in Intel by converting grants into equity. Similar arrangements have also been used with companies in rare-earth materials and mining.

US Commerce Secretary Howard Lutnick said, “The Trump administration is leading the world into a new era of American innovation.”

The administration is also reportedly working on an executive order focused on quantum technology as competition intensifies globally. Companies including Microsoft and Google have increased investments in the sector following recent advances in quantum research.

While quantum computing is still developing and commercial applications may take years to mature, government officials said the strategy of investing across multiple companies is designed to spread risk and potentially deliver long-term returns, the report added.