D-Wave and NEC partner for applications in Japan

Introduction

The partnership between D-Wave Systems, a Canadian quantum computing company specializing in quantum annealing technology, and NEC Corporation, one of Japan’s leading technology companies, represents a significant milestone in the commercialization of quantum computing in Asia. Announced in December 2019, this collaboration aimed to accelerate the adoption of quantum computing solutions in Japan by combining D-Wave’s pioneering quantum annealing systems with NEC’s extensive experience in enterprise solutions and systems integration. The partnership focuses on developing practical applications for real-world optimization problems that are particularly relevant to Japanese industries, including manufacturing optimization, supply chain management, and financial portfolio optimization. NEC’s role extends beyond mere distribution, as they provide crucial consulting services, application development, and system integration to help Japanese enterprises leverage quantum computing effectively. This strategic alliance represents a broader trend of established technology companies partnering with quantum computing specialists to bridge the gap between cutting-edge quantum technology and practical business applications.

Challenge

Japanese enterprises face increasingly complex optimization challenges in an era of global competition and digital transformation. Traditional computing approaches struggle with combinatorial optimization problems that grow exponentially in complexity, such as optimizing manufacturing schedules across multiple facilities, managing complex supply chains with thousands of variables, or optimizing financial portfolios under multiple constraints. These challenges are particularly acute in Japan’s highly efficient manufacturing sector, where even marginal improvements in optimization can yield significant competitive advantages. Additionally, Japanese companies faced barriers to quantum computing adoption, including lack of local expertise, language barriers, cultural differences in technology adoption, and the need for solutions tailored to specific Japanese business practices. The complexity of quantum computing technology itself presented another challenge, as most enterprises lacked the specialized knowledge required to translate business problems into quantum-compatible formulations. There was also a critical need for proof-of-concept demonstrations relevant to Japanese industries before companies would commit to quantum computing investments. The partnership needed to address these multifaceted challenges while demonstrating clear business value that justified the investment in this emerging technology.

Solution

D-Wave and NEC developed a comprehensive solution framework that combines D-Wave’s quantum annealing systems with NEC’s application development and consulting capabilities. The solution centers around D-Wave’s Advantage quantum system, which features over 5,000 qubits and advanced connectivity, accessed through cloud services to eliminate infrastructure barriers. NEC developed a suite of hybrid classical-quantum algorithms specifically tailored for Japanese enterprise needs, focusing on practical optimization problems. The solution includes NEC’s proprietary software tools that simplify the process of formulating business problems for quantum processing, abstracting much of the complexity from end users. A key component is the hybrid approach, where quantum processors handle the most computationally intensive optimization cores while classical systems manage data preprocessing, constraint handling, and solution refinement. NEC also established a quantum computing competence center in Japan, providing local language support, training, and consulting services. The solution architecture supports various deployment models, including cloud-based access to D-Wave systems, hybrid cloud-on-premises configurations, and fully managed services. This comprehensive approach addresses both the technical and business adoption challenges faced by Japanese enterprises.

Implementation

The implementation strategy focused on a phased approach, beginning with proof-of-concept projects in key industries before scaling to production deployments. NEC established dedicated quantum computing teams trained on D-Wave’s technology and quantum algorithm development, creating a local center of excellence. The initial phase involved identifying high-value optimization use cases across NEC’s existing customer base, particularly in manufacturing, logistics, and finance. For each use case, NEC’s consultants worked closely with customers to map business problems to quantum-compatible formulations, often using quadratic unconstrained binary optimization (QUBO) representations. The implementation included developing custom APIs and integration layers to connect quantum computing services with existing enterprise systems, ensuring seamless workflow integration. Training programs were established for both NEC’s internal teams and customer organizations, covering quantum computing fundamentals, problem formulation, and best practices for hybrid algorithm development. Pilot projects were carefully monitored with established KPIs to demonstrate quantifiable business value. The cloud-based delivery model allowed for rapid deployment without significant infrastructure investments, while NEC’s support services ensured smooth adoption. Regular optimization of quantum algorithms and parameters based on real-world results improved solution quality over time.

Results and Business Impact

The partnership yielded significant results across multiple industries, demonstrating the practical value of quantum computing for enterprise optimization. In manufacturing, several Japanese companies reported 15-25% improvements in production scheduling efficiency, reducing idle time and improving resource utilization. A major automotive parts manufacturer optimized their multi-plant production scheduling, reducing overall production time by 20% while maintaining quality standards. In logistics, quantum-optimized route planning delivered 10-15% reductions in delivery times and fuel consumption for several transportation companies. Financial services firms leveraged quantum computing for portfolio optimization, achieving better risk-adjusted returns compared to classical optimization methods. The partnership also generated substantial intellectual property, with NEC filing multiple patents related to quantum algorithm applications and hybrid computing architectures. From a business perspective, the collaboration helped establish NEC as a leader in quantum computing services in Japan, opening new revenue streams and strengthening relationships with key enterprise customers. The success stories generated significant interest from other Japanese companies, accelerating market education and adoption. The partnership also contributed to Japan’s broader quantum computing ecosystem, inspiring government investment and academic research initiatives.

Future Directions

The D-Wave-NEC partnership continues to evolve with ambitious plans for expanding quantum computing applications and capabilities. Future developments include exploring applications in drug discovery and materials science, leveraging quantum computing for molecular simulation and optimization. The partnership aims to develop industry-specific quantum computing solutions packages, making adoption easier for companies without deep technical expertise. As D-Wave’s quantum systems continue to improve in qubit count and connectivity, NEC plans to develop more sophisticated algorithms capable of solving larger and more complex optimization problems. Integration with artificial intelligence and machine learning systems represents another frontier, with plans to develop quantum-classical hybrid AI systems for enhanced decision-making. The partnership is also exploring edge computing deployments, bringing quantum computing capabilities closer to manufacturing facilities and operational centers. Educational initiatives will expand to include university partnerships and certification programs, building a larger ecosystem of quantum-literate professionals in Japan. Long-term plans include potential hardware deployments in Japan and the development of quantum computing services tailored for other Asian markets.