Archer Materials surges on reaching commercial milestone with Chinese patent granted for 12CQ quantum computing chip

Archer Materials Ltd (ASX:AXE, OTC:ARRXF) has surged on reaching a major commercial milestone with the granting of a Chinese patent protecting its 12CQ quantum computing chip technology. The Chinese patent is strong validation of the technology’s industrial and technical global competitive advantage. Archer is the only ASX-listed company and one of a few players in the world developing a qubit processor chip in the semiconductor industry. Investors have welcomed the news, driving shares to a new record of A$1.975, 22.3% higher than yesterday’s close while the company’s market cap before the opening today was approximately A$367.7 million. “Key commercialisation activities” CEO Dr Mohammad Choucair said: “Archer’s quantum computing chip IP is now protected in China – the largest market in the world, a major global economy, and powerhouse consumer of mobile technology. “The grant of a patent in China further protects, validates and substantially de-risks, our unique technology. “To realise the full commercial benefits of the 12CQ technology globally, Archer’s IP strategy includes patent protection in China. “This is in line with the key commercialisation activities of the biggest semiconductor chip manufacturers from the US, EU and Asia. “Archer is one of few companies in the world with a patent portfolio protecting quantum computing chip technology. “Archer’s global competitive advantage is difficult to erode, especially in such a revolutionary industry with significant barriers to entry”.  Major commercial milestone The Chinese Patent (Patent No 4606612) represents a major commercial milestone in Archer’s development of the 12CQ chip. Patent protection in China is required for any future commercial operations giving Archer access to the world’s second-largest economy to exploit its IP rights. Notably, the patent application successfully underwent substantive examination procedures in China by the Chinese Patent Office, which has more than 2.6 million patents in force, second only to the US, making China one of the biggest innovation economies in the world. Particular focus on semiconductors Archer considers China as a critical strategic jurisdiction to protect and commercialise its IP. China has named investment in semiconductors as one of its seven key priorities in its five-year economic plan, with the country committing to spend more than US$1.3 trillion on high-tech industries with a particular focus on semiconductors. In addition, China has the world’s largest population and market size, with over half a billion people using mobile devices in an economy that is transitioning from a low-cost manufacturer to a consumer of technology incorporating AI, autonomous systems and blockchain. - Ephrems Joseph