CICC released a research report stating that as global tech giants (Google, IBM, Microsoft, etc.) continue to break through in qubit scale and error correction accuracy, China has achieved multiple breakthroughs with prototypes like "Zuchongzhi" and "Jiuzhang." ICV estimates the global quantum computing market will grow from $5 billion in 2024 to over $800 billion by 2035, with a CAGR exceeding 55%. The hardware segment is expected to benefit first, with core equipment such as control systems and dilution refrigerators likely to enter mass production soon. Quantum computing is at a critical inflection point transitioning from scientific breakthroughs to commercialization, where hardware may lead industrial breakthroughs, presenting core equipment manufacturers with a strategic opportunity window. Key CICC insights include:

1. **Classical Computing Bottlenecks vs. Quantum Computing Breakthroughs**: As semiconductor processes shrink further, classical computing faces three major limitations: computational bottlenecks, quantum tunneling effects, and thermal issues. Quantum computing leverages qubit superposition and entanglement to exponentially increase encoded information capacity, enabling efficient solutions to complex problems intractable for classical computing. This breakthrough is particularly impactful in high-complexity fields like finance (portfolio optimization), biopharma (molecular simulation), and materials engineering.

2. **Global Quantum Tech as a National Strategic Priority**: The U.S. increased funding by $2.7 billion (2025–29) via the National Quantum Initiative Act, while the EU and Japan launched quantum flagship programs. China has consistently prioritized quantum technology since its 13th Five-Year Plan, now positioning it as a top future industry in the 15th Five-Year Plan, shifting focus from R&D to engineering and commercial applications.

3. **Industry Chain Entering Rapid Growth Phase**: The quantum computing ecosystem is advancing with synchronized breakthroughs across segments: - *Upstream*: Domestic substitution opportunities for key equipment like dilution refrigerators and control systems. - *Midstream*: Gradual maturation of integrated systems and software algorithms. - *Downstream*: Early adoption in high-complexity scenarios (finance, biopharma, materials). ICV projects the global quantum computing market to surpass $800 billion by 2035.

**Stock Picks**: Focus on Western Superconducting Technologies (688122.SH) and Siglent Technologies (688118.SH). Other related players include Hexin Instrument (688622.SH), QuantumCTek (688027.SH), Zhongtai Gas Equipment (300435.SZ), and Fujida (920640.BJ).

**Risks**: Slow technological progress, delayed commercialization, and international competition/export controls.