(Bloomberg) -- Chinese quantum computing firm Liangyi Wanxiang has raised over 100 million RMB in a Series A funding round, signaling renewed investor confidence in the sector's commercial potential. The round was co-led by Beijing Information Industry Development Investment Fund and Shunwei Capital, with notable participation from AI giant iFlytek, Junlian Capital, and Yizhuang State-owned Investment.
The capital will be used for "engineering breakthroughs in full-machine manufacturing, continuous development of core technologies, and comprehensive layout of the industrial ecosystem," company Chairwoman Shi Qi said.
Founded in July 2024 as a spin-off from a Tsinghua University research team, Liangyi Wanxiang focuses on the neutral atom approach to quantum computing. This funding follows an angel round from Junlian Capital in August 2025. The investment comes as China's quantum sector saw its total financing reach 32.04 billion RMB in the first quarter of 2026 alone, exceeding the total for all of 2025.
The deal highlights China's strategic push to gain an edge in a technology with the potential to reshape industries from materials science to drug discovery. Liangyi Wanxiang's plan to build a full-stack, vertically integrated quantum computer puts it in direct competition with global efforts, though the company noted the primary bottleneck for the entire industry remains a severe shortage of qualified, interdisciplinary talent.
Unlike startups that focus on a single part of the value chain, Liangyi Wanxiang is pursuing a vertically integrated strategy, developing everything from core components and control systems to the quantum computer itself and a cloud platform. The company stated this approach is necessary to ensure a self-sufficient supply chain and create a tight feedback loop between hardware and application development.
This ambition is supported by a deep connection to academia, which the company calls its "three-horse carriage." Tsinghua University's Higher Research Institute handles theory, the physics department's lab focuses on experimental breakthroughs, and Liangyi Wanxiang commercializes the technology. A key underlying technology is an "optical metasurface" developed by the university team that can trap and manipulate thousands of atomic qubits. The company's first-generation atomic quantum computer, which will incorporate these technologies, is scheduled for release in the spring of 2027.
The surge in quantum investment is driven by strong government backing and key technical milestones. Quantum technology was listed as the top priority for future industrial layouts in China's "Fifteenth Five-Year Plan," directing state-backed funds toward the sector. This policy push, combined with technical advances in qubit stability and scale by global players, has provided investors with verifiable confidence anchors.
However, Chairwoman Shi Qi noted that the most significant barrier to growth is a structural talent deficit. Quantum computing requires a rare blend of expertise in physics, engineering, and computer science. According to the source material, China has fewer than 200 technical directors capable of managing a full quantum computing project, and the annual output of qualified PhD graduates who can enter the industry is "extremely small." For Liangyi Wanxiang and its peers, building a sustainable talent pipeline may prove a greater long-term challenge than securing capital.
This article is for informational purposes only and does not constitute investment advice.
