Xanadu Soars 16% on Multi-Year GlobalFoundries Deal to Deliver “Quantum Computing at Scale”

Key Takeaways

• Xanadu shares jumped 16% after the company signed a multi-year deal for GlobalFoundries to make its photonic quantum components on a 300 mm production line.
• The deal gives Xanadu a way to make its key chips in volume, and it needs that to build fault-tolerant quantum computers.
• No dollar terms were disclosed, and analysts expect revenue of only about $9.2 million this year.
• Xanadu had $312.8 million of cash at the end of June. Watch how fast it spends that on the way to its fault-tolerant demonstrators.

Xanadu Quantum Technologies (XNDU) shares are up 16% today. Before the open, the photonic quantum computing company announced a multi-year manufacturing partnership with GlobalFoundries (GFS).

No dollar figures were disclosed. But for a quantum company at this stage, this is the news that matters most: a path to making its chips in volume.

What exactly happened

GlobalFoundries will make two of Xanadu’s core components on its 300 mm production line in Malta, New York:

• Superconducting nanowire single-photon detectors (SNSPDs). These sensors count individual particles of light (photons) to read out a calculation’s result.
• Ultra-low-loss silicon nitride (SiN) photonics. These act as circuit boards for light, guiding photons with almost no signal lost along the way.