Japan's NEC has pulled the plug on building quantum computer hardware. The company decided at the end of March that the tech is too far from commercial viability and wouldn't deliver a solid return on investment anytime soon.

What happened

NEC is winding down its efforts to create the physical hardware—the actual "iron"—behind quantum computers. This move is strictly about the hardware side; the rest of NEC's quantum-related projects are sticking around.

What NEC is still working on

The company is staying active in quantum annealing, quantum-inspired computing, and services that run on classical computers. These business lines don't require NEC to have its own quantum hardware, letting them build solutions and offer services using traditional computing power.

Why NEC is shifting focus

NEC concluded that the payback period for quantum hardware is just too far out, and the expected profitability isn't high enough to justify the investment. By shifting resources toward quantum annealing and quantum-inspired software, NEC is aligning with its current business priorities.