(Oct 27): Intel Corp agreed to buy Israeli start-up Classiq Technologies Ltd as part of a push to capitalise on quantum computing, a still-nascent field that is seeking commercial applications.

The chipmaker will pay about US$2.3 billion (RM9.4 billion) for Classiq, according to people familiar with the matter who asked not to be identified because the information is private. Intel announced the deal ahead of its third-quarter earnings report on Thursday, but did not disclose a price. Israeli newspaper Calcalist reported the value previously. 

Intel, once the world’s largest chipmaker, wants to ensure that it doesn’t miss out on quantum technology, a potentially large new market for the semiconductor industry. Chief executive officer Lip-Bu Tan is seeking to regain ground lost to rivals in artificial intelligence (AI) computing. 

“Joining forces with Classiq transforms Intel’s Quantum Computing Group into a full-stack quantum computing business,” Tan said in a statement. The companies expect the transaction to close in the first half of 2027. 

Classiq offers its customers, which include BMW AG and AT&T Inc, access to specially developed AI tools that help them test out the usefulness of quantum for their operations. The company, which has raised more than US$200 million in funding and has about 130 employees, will continue to help clients develop code that runs on multiple types of quantum hardware — even if it is sourced from Intel’s competitors.

Quantum computing relies on the manipulation of subatomic particles to speed up data crunching. Though still a fledgling industry, the field has gained interest from large technology companies seeking an edge over traditional computer processing. But the massive complexity of quantum hardware makes it difficult to deploy at a large scale.

Intel has been working to parlay its strengths in silicon-based component manufacturing into a role in quantum computing for more than a decade. Like others, it sees quantum components working alongside traditional computers, not replacing them wholesale. It’s focused on a technology called spin qubits. 

“This revolution is about the shift from science to engineering,” said Classiq CEO Nir Minerbi, who co-founded the start-up in 2020. “When you think engineering, you think Intel.”

Uploaded by Tham Yek Lee