Israel Quantum Computing Market Opportunities for U.S. businesses

Israel has swiftly positioned itself as a global innovator in quantum computing, offering significant business opportunities for U.S. companies in this cutting-edge field.

Recognizing quantum computing as a key growth area, the Israeli government launched the Israel National Quantum Initiative (INQI) in 2018 with an initial budget of approximately $390 million. This initiative focuses on advancing quantum research, developing a skilled workforce, promoting industrial innovation, and fostering international collaborations. A major milestone of the INQI is the Israeli Quantum Computing Center (IQCC), established at Tel Aviv University in June 2024. This state-of-the-art facility combines multiple quantum computing technologies with high-performance classical computing resources, creating a hub for researchers and industry professionals to drive quantum advancements.

Israel has cultivated a small but thriving quantum computing ecosystem and the number of Israeli firms working in quantum technologies has surged from 5 to 30 in recent years, spanning hardware and software solutions for both defense and civilian applications. The country’s vibrant startup culture, coupled with substantial government support, positions Israel as an ideal partner for international collaboration.

The U.S. and Israel share a robust economic and commercial partnership which includes quantum computing, where both countries collaborate through joint research, funding initiatives, and strategic projects. For instance, the U.S.-Israel Binational Industrial Research and Development (BIRD) Foundation awarded a $2.2 million grant to support U.S. and Israeli companies in developing advanced quantum machine learning algorithms and quantum processor configurations. These initiatives target applications in critical sectors such as finance, pharmaceuticals, and security.

Israel’s dynamic tech ecosystem has attracted major multinational corporations, including Microsoft, Google, Amazon, and Intel, to establish research and development (R&D) centers within the country. These centers not only advance the companies’ global technological capabilities but also serve as incubators for new quantum ventures, leveraging Israel’s innovative environment.

Israel’s commitment to international collaboration, combined with its strong governmental support and innovative ecosystem, presents a compelling opportunity for U.S. businesses. By leveraging Israel’s unique capabilities and shared partnership goals, U.S. companies can contribute and benefit from the next wave of quantum computing advancements as well as transformative business opportunities.

U.S. companies interested in learning more about quantum computing industry in Israel may contact Christina.Azar@trade.gov.  

For more information on business opportunities in Israel visit: U.S. Commercial Service Israel