1、2023Global Quantum Communication&SecurityIndustry Development ProspectFebruary 2023Quantum Annual Series ReportQuantum Annual Series ReportQuantum Annual Series ReportQuantum Annual Series ReportForewordICV Frontier Technology Consulting Director,Senior Vice PresidentJude GreenAs the new generation

2、of information technology develops,the amount of data grows rapidly.However,at the same time,the risk of data being stolen or altered by attackers through the internet increases.The occurrence of digital information leaks has also resulted in an increasing demand for information security from countr

3、ies,organizations,and individuals.On the other hand,the continuous development of quantum computing technology poses unprecedented challenges to public-key cryptography systems based on large number factorization and discrete logarithms.Cryptography is the cornerstone of network security technology.

4、Quantum information security uses both quantum physics-based cryptography techniques(such as QKD,QT,and QSDC)and mathematics-based cryptography techniques(PQC).These new generation encryption technologies can be nested at different stages of the entire network,providing an additional layer of securi

5、ty to take on the heavy responsibility of information security in the quantum era.The physics-based QKD cryptography technique has some applications currently,but is still in the development stage.The mathematics-based modern cryptography system is well established and widely used,but cryptography c

6、racking techniques are constantly challenging and stimulating the evolution of new generation cryptography techniques.Although it may take ten years or even longer for the first quantum computer capable of breaking the current public-key cryptography to appear,there is a considerable amount of time

7、for the deployment of quantum security devices by migrating from classical devices to quantum security devices.At the same time,the large amount of data that has been intercepted and stored currently has the risk of being deciphered by quantum computation in the future if new information confidentia

8、lity methods are not deployed promptly.National confidential information needs to be safe and confidential,not only now but also in the future.The current research and application of quantum information security are of great practical significance and measures must be taken to protect important digi

9、tal information from quantum attacks.DisclaimerTheopinionsexpressedinthisreportstrivetobeindependentandobjective,anddonotconstituteanyadvertisement.Thedatainthisreportaremainlypublicinformation,aswellasthecollationofpublicdata.ThecopyrightofthisreportisownedbyICVTAnK.Anyotherformofuseordissemination

10、,includingbutnotlimitedtopublications,websites,publicaccountsorpersonaluseofthecontentofthisreport,needstoindicatethesource(2023GlobalQuantumCommunication and SecurityIndustryDevelopmentProspect.ICVTAnK,2023.02).Whenusingthecontentofthisreport,anyquotation,deletionandtamperingagainsttheoriginalinten

11、tionofthisreportshallnotbecarriedout.Withoutwrittenpermission,anyinstitutionorindividualshallnotreproduce,reproduceorpublishinanyform.Ifconsentisobtainedforquoting,reprinting,andpublishing,itmustbewithinthescopeofpermission.Thosewhousethisreportinviolationofregulationsshallbearcorrespondinglegalresp

12、onsibilities.Thepurposeofcitingdata,eventsandopinionsinthisreportistocollectandsummarizeinformation,anditdoesnotmeanthatweagreewithalloftheiropinions,andwearenotresponsiblefortheirauthenticity.Thisreportinvolvesdynamicdata,expressesthesituationasofthetimeofpublishing,anddoesnotrepresentthefuturesitu

13、ation.Theinformationoropinionsexpressedinthisreportdonotconstituteinvestmentadvice,pleasereferwithcaution.Forotherquestions,.This report is jointly produced by ICV and GUANGZIHE.Wearegratefultotheinstitutionswhoofferedussupport,includingbutnotlimitedto:Global Quantum Communication&Security Report WG

14、Feb 2023Acknowledgments2023GlobalQuantumCommunication&SecurityIndustryDevelopmentProspectTechnicalAdvancementIndustryEcosystemCompanyAnalysisInfrastructureDevelopmentPolicyReleaseIndustryAnalysis&ForecastProspectiveView1 12 23 34 45 56 67 78 8Table of ContentsInvestmentOverviewTechnical Advancement0

15、1To address the information security issues in the quantum era,various technologies and products have emerged.Both physical-basedandmathematical-basedmethodsaimtoreducetherisksintransmittingexistingnetworkinformation.Thischaptercategorizesencryptiontechnologiesintophysical-basedandmathematical-based

16、,andanalyzestheadvancementsmadein2022intermsoftechnology,applications,andstandards.AdvancementsinPhysicalEncryptionTechnologyThedistanceoftheQKDlinebasedonfibertransmissionisrefreshed,layingthefoundationforthekilometer-scaleterrestrialQKD.In2022,fiber-basedtransmissionshoneinbothQKDandQSDCtechnologi

17、es,breakingrecordsinlength.ThetransmissiondistanceofTF-QKD was refreshed to 833 km,a further step towards secure quantumcommunicationoverlongdistancesonland.Additionally,TF-QKDisakeyarea of recent development,and its protocols have the advantage ofhaving a key rate that decreases with the square roo

18、t of the channeltransmission rate,making it a promising direction for ultra-long-distanceQKD.ThetransmissiondistanceofQSDCwasalsoupdatedto100km.TheresearchonQKDbasedonsatelliteshasbeenparticipatedbymanycountries,withtheaimoflaunchingmicro-nanosatellitestoverifynetworktechnology.Satellitetransmission

19、isanimportantmodeoftransmissionbesidesfibertransmissionandiscurrentlythemaindevelopmenttechnologyforquantumcommunication.Theglobalquantumnetworkcomposedofquantumcommunicationsatellitesisfurtherexpandingexperiments,andcountriesallhopetohavesovereigntyinnetworksecurityandcommunication,andtodeveloptheq

20、uantumsecurecommunicationnetworkintoaneconomical,compact,and commercial form through the verification of satellitenetworkingprograms.In2022,countriessuchasChina,theUK,Singapore,theNetherlands,Luxembourg,France,Canada,andIndiahavemadeprogressinsatelliteQKD:Chinas Mozi satellite has refreshed the curr

21、ent farthest distance of1200 km for QKD and the Jinan 1 micro-nano satellite has beensuccessfullylaunched.TheUKhasselecteditsexistingsatellitegroundstationtobeusedasademonstrationandtestinggroundstationforopticalsatellitecommunications for quantum security.The UK is also working withcompanies in Sin

22、gapore and the Netherlands to develop the Spectresatellite.A 20-company alliance led by Luxembourg satellite company SES andsupported by the ESA and the European Union Commission will design,develop,launch,andoperateasecureend-to-endQKDsystembasedontheloworbitsatelliteEAGLE-1.French aerospace compan

23、y Airbus claims to have developed a high-performancesatellitecapableofsupportinghigh-throughputrequirementsforaQKDnetworkbasedonsatellitesandplanstoputthenewpayloadsystemintousebefore2026.SpeQtral has signed a memorandum of understanding with Thales AleniaSpace to research,develop,and demonstrate gr

24、ound-to-space quantumcommunication,and will use the quantum satellite SpeQtral-1 beingdeveloped by SpeQtral and the quantum ground receiving station beingdevelopedbyThalesAleniaSpaceforjointexperiments.CanadaandtheUKarecollaboratingonatrans-Atlanticquantumsatellitelink.Indianstart-upQNuLabshassigned

25、amemorandumofunderstandingwiththeIndianNationalSpacePromotionandAuthorizationCentertodevelopadomesticQKDproduct.TheimprovementofQKDsystemsisnotonlyfocusedonenhancingsecurity,butalsomakingeffortsinthecorecomponentlevel,suchashigh-qualitylightsources.BesidesbeingappliedinQKDsystems,quantumlightsourcet

26、echnology can also empower quantum computing and quantum precisionmeasurement.Hence,thedevelopmentofnext-generationlightsourcesandrelateddeviceswillprovidepossibilitiesformultiplefutureapplications.Germanyhasidentifiedphotonicstechnologyasakeyareaofdevelopment.In2022,multipleteamsattempteddifferenta

27、pproachesinquantumlightsourcesbyexploringdifferentsubstratematerials,processes,anddevicetechnologiestoenhancethequalityofthelightsources.Forexample,the University of Electronic Science and Technology of China,incollaboration with its partners,validated the frequency-multiplexedsingle-photonsourceonl

28、ithiumniobatesubstrate.TheUK-basedquantumlightsourcestart-up,Aegiq,partneredwiththeUniversityofEssextodevelop quantum light sources for space communication.In addition,AmazonWebServicesandtheUSDepartmentofEnergysNationalQuantumInformation Science Research Center(Q-NEXT)are working together tomanufac

29、tureanddevelopquantumrelay-relatedtechnologies,andtheyusenanoscalepositioningtoalignthefibertipwiththerelayreceivertoaddress engineering challenges and advance the construction of quantumnetworks.Thedevelopmentofsubsystemsischaracterizedbytheimprovementofcoreupstreamcomponentssuchashigh-performancel

30、ightsourcesandquantumrepeaters.Theseareamongtheimportantfocusesofadvancement.Interdisciplinaryresearchisbecominganecessarysteptowardsthepracticalimplementationofquantumcommunicationtechnology.The combination of 5G and even 6G with quantum communication andsecurity,as well as the integration of quant

31、um communication andsecurity with more fields such as computing networks,is based onexisting mature technologies and aims to explore cross-disciplinaryresearch.Regardless of the development of quantum communication andsecuritytechnologyitself,cross-disciplinaryresearchwiththeentireindustry is a nece

32、ssary stage for the practical application of thistechnology.For example,German network equipment provider UET and the TechnicalUniversity of Dresden have launched the 6G-QuaS research project todemonstrate more secure communication and performance enhancement inindustrial networks,and to integrate q

33、uantum technology with existingtelecominfrastructure,showingtheadvantagesofaquantumnetworkwithnewencryptionprotocolscomparedtoprevioussystemdesigns.In China,Origin Quantum and China Mobile Communications ResearchInstitutearecollaboratingtoexplorequantumalgorithmstoaddressthecomputational bottleneck

34、faced by 5G and 6G,with Origin Quantumprovidingquantumcommunicationalgorithmsbasedonreal-machinevalidationonaquantumcomputer.In the US,Amazon AWS has established the AWS Quantum Network Center(CQN),which will develop new hardware,software,and applications forthequantumnetwork.TheCQNwillsupplementthe

35、advancedquantumscienceand engineering work already being done by the AWS Quantum ComputingCenterandtheAmazonQuantumSolutionsLab.Themaindirectionofimprovementforthecutting-edgetechnologies,DI-QKDMDI-QKD,stilllacksthecapabilitytobecommerciallyapplied.DI-QKDandMDI-QKDprotocolswereimportantresearchdirec

36、tionsdemonstrated in academic papers in 2022.MDI solves the problem of anattacker controlling the detectors,while DI solves the problem of anattackercontrollingallthedevices.Itsimportanttonotethatthesetechnologies are experimental verifications assuming a very strongattackercapability,andtheyarestil

37、lfarfromcommercialization.TheDutchcompanyQuTechandEurofiberhavepartneredtolaunchaquantumnetwork testing platform connecting multiple data centers in theNetherlands.The platform,based on QuTechs MDI-QKD technology,willvalidatetheoperabilityofintegratingMDI-QKDsystemsintocommercialfibernetworks.Advanc

38、ementsinPQCThethreeimportanttasksinthefieldofPQCarestandardizationprojectsbyNIST,algorithmapplicationR&D,andpromotionanddeployment.The main advancements in PQC in 2022 can be characterized in threeaspects:The standardization work of PQC by NIST(the National Institute ofStandardsandTechnology)intheUn

39、itedStates.Overthepast20years,thedevelopmentofPQCalgorithmshasbeenongoingandiscurrentlybeingselectedandestablishedasastandardbyNISTandotherstandardizingorganizations.Currently,fouralgorithmshavebeenprovisionallyconfirmed,including CRYSTALS-Kyber for general encryption and threeschemesfordigitalencry

40、ption:CRYSTALS-Dilithium,FALCON,andSPHINCS+.Theformerensurestheconfidentialityofmessagetransmission,whilethelatter ensures the authenticity,integrity,and non-repudiation ofmessagetransmission.PQCtechnologydevelopers,basedonthestandardalgorithmspublishedbyNIST,havedevelopedandlaunchedcommercialproduc

41、tsthataresuitablefortheiruse.Forexample,CastleShield,aproviderofzero-trustandnetworksecuritysolutions,haslaunchedTyphos,asecurecommunicationmobilesolution,whichsupportsthePQCalgorithmsselectedbyNISTforaudioandvideocalls.AllofthefeaturesofTyphosareprotectedbyend-to-endPQCencryption.PQC technology dev

42、elopers and cryptography users are conducting morelearning,discussion,andpromotionoftheimportanceofPQC,preparingfortheultimatemigrationdeployment.Forexample,SandBoxAIandGooglepublishedanarticleinNatureentitledTransitioningTweetOrganizations to Quantum-Resistant Cryptography,which provides acomprehen

43、siveexplanationofthesystematicnatureofthetransition.Companiesinthefieldofnetworksecurity,IoT,semiconductors,etc.,enteredthePQCfield,launchingtheirownresearchorcollaborativeresearchanddevelopment.In 2022,more network security companies,IoT,and semiconductorcompanies entered the quantum communication

44、and security market due totheirstrongapplicationcombinations,wheretheirtraditionalbusinessesare heavily dependent on secure information transmission.For example,Swiss network security,AI,blockchain,and IoT company WISeKey joinedforceswithPQCstart-upcompanytoestablishanewsemiconductorquantumtechnolog

45、y company,SEALSQ Corp.This allows them to widely integratewiththecompanysexistingsemiconductorapplications,drivingprogressinthefieldsofcommunication,computing,healthcare,militarysystems,transportation,cleanenergy,andcountlessotherapplications.Semiconductor chip and solution provider Infineon launche

46、d a KeyShieldplatformmodule,protectingfirmwareupdatesfromattack,mitigatingthethreat of firmware damage and enhancing the long-term performance ofdevices.TheUnitedStatesisaleadingadvocatefortheadvancementofPQC,withfrequentactionsinstandardizationandimplementation.The United States has been a major dr

47、iving force behind the globaldevelopment of Post-Quantum Cryptography(PQC).In 2022,the BidenAdministration passed the National Security Memorandum and signed anagreement with the G7 group to further accelerate the pace of PQCdevelopment.AlthoughthetermsrelatedtoPQCappearedonlyfourtimes(quantum-resis

48、tant protocols,quantum-resistant cryptography,quantum-resistant algorithms,quantum-resistant encryption)in the memorandumRegarding Improving the National Security and Intelligence CommunitySystems,itisevidentthattheUSgovernmenthasembracedPQCandistakingpracticalstepstorequiresomepreparatoryworkformig

49、rationtobe completed within a limited timeframe and to ask the EU to quicklyadvance the PQC migration work.Additionally,the White House,in itsstatement on the G7 group,openly confronts the Peoples Republic ofChina(PRC)initstitleandthemeetingemphasizesenhancingindustrialchainresilienceandstrengthenin

50、gcooperationtoaddresschallengestonationaldefenseandsecurity.PQCisnotyetreadyforcommercializationandthetransitionfromclassicalcryptographytoquantum-resistantcryptographystillpresentschallenges.Inthefieldofmathematicalcryptography,PQC,asageneraltermforaseriesofalgorithms,somespecificalgorithmshavebeen

51、experimentallyproven to be not resistant to quantum computing capabilities.As aresult,thealgorithmsaregraduallyevolvingandoptimizingtowardsmoreadvanced levels.In addition to the algorithm technology itself,therearemanysituationsthatneedtobeverifiedandstandardized.Thepublichasnotyethadapersonalexperi

52、encewiththethreatposedbyquantumcomputers,which is also a major reason why the downstream industryapplicationsaremovingslowly.However,forhighlyconfidentialinformation,suchaslong-termconfidentialnationalsecrets,waitinguntilquantumcomputersaretrulyavailabletomigratewouldposeimmeasurablerisks.Therefore,

53、inthesefields,amixedencryptionmethodwillbeadoptedintheshortterm,thatis,the use of classical encryption systems and quantum-resistantcryptography systems.This application will first appear in specialindustriessuchasfinancialinstitutions.Currently,some chip design companies are also participating in t

54、heresearchanddevelopmentofPQCchips,andtheengineeringofPQCisalsoanimminentdirectionfordevelopment.Thisisbecausemovingfromasetofacademicmathematicalalgorithmstoatrulypracticalsetthatcanservesocietyisnoteasy.Applications&CommercialProgressRegardlessofwhetheritsQKDorPQC,thecommercialapplicationsmusttake

55、intoaccountthearrivalofquantumcomputingpracticality.QuantumKeyDistribution(QKD)canbeunderstoodasanadditionalstepinthe network where the two parties verify the security of theircommunication through cryptographic authentication before transmittinginformation.On the other hand,Post-Quantum Cryptograph

56、y(PQC)is aseriesofalgorithmsthathavebeenverifiedfortheirsecuritythroughmathematical methods.Currently,there is ongoing discussion amongvariouspartiestoselectthebestandmostsecurealgorithms.Oncethealgorithmsareselected,thetransitionfromclassicalcryptographytoacombination of classical and PQC algorithm

57、s will begin,graduallyreplacingtheformeraccordingtothelevelofinformationconfidentiality required in various scenarios and stages.The ultimategoalistocompletethistransitionbeforethepracticalimplementationofquantumcomputers,otherwise,informationsecuritywillfacesignificantthreats.Theopeningofthelargest

58、accessnodequantumcitynetworkprovidespotentialforrealizingmoreapplicationcasescenarios.In terms of practical QKD network construction,Chinas Hefei QuantumCityMetropolitanNetwork(Chinaslargestquantummetropolitannetwork,consisting of 8 core sites and 159 access sites,with a total fiberlengthof1,147km)p

59、rovidesquantumsecureaccessservicestonearly500partyandgovernmentagenciesatthecityanddistrictlevels.Chinaiscurrently the country with the most achievements in QKD networkinfrastructure construction globally.The opening of the quantummetropolitan network(connecting different regions and organizationswi

60、thinacity)andtheconnectiontothequantumbackbonenetwork(inter-provincial and inter-city connections)and quantum local area network(access to multiple terminals within a unit or location)provide thenecessary infrastructure for widespread application of confidentialcommunicationnetworksinmoredomainsinth

61、enextstep.QRNG,asaproductthatcanbeappliedinQKDandotherapplications,israpidlydeveloping.Currently,there are very few companies that have commercialized andintegrated QRNG chips,as there are still areas of improvement in themanufacturing process of QRNG chips.Among the global companies thatprovideQRNG

62、chips,SwitzerlandsIDQstandsout.IDQsQRNGchipswereusedforthethirdtimeinthequantum5GsmartphonejointlyreleasedbySamsungandSKTinSouthKorea.SKTandIDQhavealsocollaboratedwithotherdownstreamapplicationpartnerstodevelopsecureproductsfortheInternet of Things,V2X,and financial sectors,and expect to makeprogres

63、s in terms of size,performance,and price to facilitatecommercialization.IDQ has also teamed up with Frances CryptoNextSecurity PQC company to develop QRNG+PQC technology for mobile phones.CanadasQuantumeMotioncompanyhasmadeprogressinthedevelopmentofits QRNG product in the blockchain application,and

64、has completed thedesignofahardwareencryptedwallet.Mobileoperatorsprioritizethedevelopmentofdownstreamapplicationsfocusedprimarilyonvoicecalls,whichcannotbeachievedwithouttheconstructionofaQKDinfrastructure.More and more mobile operators are joining the field of quantumcommunicationandsecurity.Amongt

65、hem,ChineseandKoreanoperatorsshowrelativelypositiveperformance,whichiscloselyrelatedtothecurrentconstructionlevelofnationalquantumsecurecommunicationinfrastructure.The three major mobile operators in China all madesignificant contributions in 2022.China Telecom launched the TianyiQuantum HD Encrypte

66、d Call;China Mobile launched the Quantum EncryptedCall based on VoLTE and will be commercialized in Xiongan and otherregions;China Unicom released the Cloud Era Quantum CommunicationTechnologyWhitePaper,andChinaUnicomstatedthatitwillcontinuouslypromotethedevelopmentandapplicationofquantumcommunicati

67、on standards and industrialization.SKT,one of the threemajormobileoperatorsinKorea,hasalsoworkedwithSamsungforthreeconsecutiveyearstolaunchtheQuantum5GSmartphone.QuantumcommunicationhasbeentestedinareassuchasQaaS,blockchainapplications,drones,stocktrading,andsmartpowergrids.The downstream applicatio

68、ns of quantum communication are graduallyexpandingintoawiderrangeoffieldssuchasQaaS,blockchain,unmannedaerial vehicles,finance,and power grids,expanding the space fordownstreamdevelopment.Forexample,AmericancompaniesEPBandQubitekkhave introduced a commercial quantum network,quantum-as-a-service,desi

69、gnedforprivatecompanies,governments,anduniversityresearcherstorunquantumdevicesandapplicationsonexistingfiber.Toshiba and its partners have established the first QKD network forprotecting mission-critical blockchain applications in the US.FloridaAtlantic University,Qubitekk,a US defense contractor,a

70、nd IT serviceproviderL3Harrisarecollaboratingtodevelopthefirstmobilequantumcommunication network based on drones for the US Air Force.NomuraHoldings,Nomura Securities,and the National Institute of Informationand Communications Technology in Japan tested a use case based on theexchangeofkeysbetweenTo

71、shibashigh-speedQKDdeviceandNECsQKDdevice,in combination with actual stock trading operations,to verifythepracticalityoftheQKDsystemandvariousencryptionmethods.OakRidge National Laboratory and Qubitekk are collaborating on practicalsecurity authentication(including signature and verification)researc

72、hand trials based on QKD for the smart power grid system,and ChinasQuantumCTeK is conducting Quantum+5G applications in the powersector.Small-scaletrialsofpost-quantumcryptography(PQC)havebeenconductedinareassuchasVPNandICcards.SK Telecom and SK Broadband in South Korea are expanding their anti-quan

73、tum cryptography to the global virtual network(VPN)that usesinternational networks,further improving the security level of theirinternational network component.Japans NICT and its partners havedeveloped a PQC-based IC card and applied it to medical staff IC cardauthentication and access control in t

74、he long-term secure data storageandexchangesystemforelectronicmedicalrecorddata.Standardization WorkIn2022,thestandardizationworkofQKDandPQCcontinuedtoadvance,and the pace of standard release kept pace with the development ofvarious sub-technologies within a reasonable timeframe.This meansthat many

75、sub-technologies have not yet reached the necessaryrequirements for systematic standardization,while others that arematureandhaveastandardizationfoundationarebeingstandardizedinanorderlymanner.InadditiontothestandardspromotedbyNISTandISO/IEC,theUKGSMAhasalsoestablishedaworkinggroupwithIBMintheUSandV

76、odafoneintheUK,andalthoughtherehasnotbeenaclearannouncement that the content of the working group will form theindustry standard,the work they are doing is actually a normativesummaryofthetechnicaldetailsofsub-fields.InadditiontothestandardsforQKDandPQC,standardizationworkforspecialized technologies

77、 and products has also been initiated.Chinahasundertakenthestandardizationoflithiumniobatecrystals,whichplay a significant role in the high-quality development of quantumsecurecommunication.ThisworkreflectsthatChinahasaccumulatedacertainlevelofexpertiseinthisfield.As of January 2023,China has releas

78、ed 7 standards for quantumcommunicationandsecurity,with5oftheminthecommunication(YD)field and 2 in the national secret(GM)field.Chinas nationalstandardshaveexpandedfromthecommunicationfieldtothenationalsecretfield,indicatingafurtherwideningofthecoverageofquantumsecuritycommunicationtechnologyinChina

79、sindustry.Quantumsecuritytechnologyisnotonlyanindispensablenewtechnologyinthecommunication field,but also an important new technology in thenationalcryptographysystem.ThestandardsrelatedtoQKDandPQCarebeingadvanced,andanewworkinggroupisbeingestablishedtoformulatethestandards.Thestandardizationworkfor

80、morespecifictechnicalfieldsisbeingestablished.Chinasstandarddocumentsinthefieldofquantumcommunicationandsecurityinvolvebothcommunicationandconfidentialdomains.Industry Ecosystem02The field of quantum communication and security has enriched theinformation security industry ecosystem,based on the curr

81、entinformation communication and network security industry,due to theemergence of new technologies.At the same time,because quantumcommunication and security technologies are still cutting-edgetechnologies,scientific research instruments and equipment thatserve as auxiliary industries for developmen

82、t,particularly someproducts that provide precise measurement and state stability(suchas low-temperature equipment),also provide equipment for theindustry.Forexample,inpracticalexperiments,inpursuitofsomeextremeandspecialrequirements,thequalityorperformanceparametersofthelightsourcearehigherthanthose

83、oftheproductsin the actual QKD networking,and low-temperature thermostats willalsobeusedasenvironmentalassistanceforexperimentalsamplesinsomeexperiments.Itshouldbenotedthatsomeprecisioninstrumentsand equipment are indispensable hardware for quantum communicationresearch and development(such as oscil

84、loscopes,arbitrary waveformgenerators),which are mostly mature research and developmentequipmentandthereforenotincludedinthisindustrysuppliermap.The upstream of the industrial chain in the field of quantumcommunication and security is the supplier of core equipment andcomponents.Currently,the commer

85、cial form of PQC is estimated to besimilar to that of the cryptography algorithm industry,with upstreamproviderspossiblybeingsoftware-baseddevelopmenttoolsandhardware-basedtestingequipment.Currently,acompleteindustrialchainforPQChas not yet been established,so it has not been included in thisupstrea

86、mresearchintheindustrialchain.ThebuildingofQKDnetworksiscurrentlymainlybasedonfiberandsatellite,withtheconstructionof the infrastructure for fiber-based QKD networks accounting for themajority.Therefore,classical optical communication products are alsousedintheQKDindustrialchain,buttheseproductsarem

87、ature(suchaspower supply,fiber,broadband modulator,polarization splitter,PFGA,modulator,etc.)andwidelyused,sotheyhavenotbeenincludedinthisindustrialsuppliermap.Thisstudyfocusesonthecoreandnewquantumcommunication products.These companies provide light sources(such aslasers,entangledsources),photondet

88、ectors,QRNGsandothercomponents(suchasquantummemorieswhichplayanimportantroleinlong-distancequantumcommunicationandquantuminternet).Theseproductscollectivelyform QKD device products(such as quantum key distribution machines,quantum key receiver machines or integrated quantum key receivermachines).QRN

89、GPhoton DetectorPhoton SourceOtherquantum memoryNote:The logo of some companies appears multiple times,with the intention of showing that the company is involved in business in different sections.optical componentssingle-photon counter|Version Feb 2023UpstreamExhibit 2-1 Quantum Communication and Se

90、curity Upstream-QKD Upstream Core DeviceThemiddle-marketcompaniesintheindustrychainserveasprovidersofcomprehensive solutions in the fields of quantum communication andsecurity.For example,they integrate upstream products and offercomplementarysoftwareorplatformsystems,providingthemostcriticalsupport

91、fortheimplementationofQKDnetworks.Middle-marketcompaniescanbeprimarilydividedintothosethatdevelopproductsandsolutionsprimarilybasedontheprinciplesofquantumphysics(e.g.ToshibaandQuantumCTek,both providers of QKD equipment),those that developproductsandsolutionsbasedonmathematicalalgorithms(e.g.PQShie

92、ldintheUKandPQCTECHinChina),andthosethatresearchkeymanagementandquantumsecuritycommunicationSaaS.PQCQKDEncryption Platform/Key Management/Quantum SaaS信量子|Version Feb 2023MidstreamExhibit 2-2 Quantum Communication and Security MidstreamTheparticipantsinthisquantumcommunicationandsecurityindustryarema

93、inlyprofit-orientedorganizations,whicharemostlystartups.However,universitiesandresearchinstitutesalsoplayasignificantroleinthedevelopmentoftheindustrybycontributingimportant technologies.Many of these startups are incubated fromuniversitiesorresearchinstitutes,suchasIDQ,aspin-offofthecolePolytechniq

94、ueFdraledeLausanne,QuantumCTek,aspin-offoftheUniversityofScienceandTechnologyofChina,Q-Bird,aspin-offofDelftUniversityofTechnology,andQuantumDice,aspin-offofOxfordUniversity.Traditionalcompaniesinthefieldsofnetworksecurity and semiconductors are increasingly implementing quantumsecuritytechnologies,

95、suchasNXP,Thales,Fortinet,andsoon.Inaddition,IBM and Google are also involved in quantum informationsecurity,in addition to their research efforts in quantumcomputing.EUEUSwitzerlandSwitzerlandChinaChinaJapanJapanIndiaIndiaKoreaKoreaSingaporeSingaporeAustraliaAustraliaUKUKCanadaCanadaUSAUSA信量子|Versi

96、on Feb 2023IsraelIsraelRussiaRussiaNote:This chart focuses mainly on companies with quantum technology as their core business,and does not take into account traditional companies entering the quantum field.Participant distributionExhibit 2-3 Quantum Communication and Security CompanyIn terms of the

97、countries where the corporate headquarters arelocated,the United States,Canada,the European Union(such asGermany,France,Spain,Italy,Finland),theUnitedKingdom,andChinaarecountrieswithahighconcentrationofparticipantsinthequantumcommunicationandsecurityfield.Inaddition,Russia,Israel,Japan,SouthKorea,In

98、dia,Singapore,andAustraliaalsohave many start-up companies in the quantum communication andsecurityfield.In terms of the specific sub-businesses that companies areinvolvedinwithinthequantumcommunicationandsecurityfield,therearerelativelyfewcompaniesintheUSthatspecializeinQKDhardware,butalargernumber

99、ofcompaniesthatfocusonPQCalgorithmsoftwareandsecurityplatforms.Canadiancompaniesarepredominantlyfocusedonalgorithmsoftwareandsecurityplatformsas well.In China,hardware companies are more prevalent,withonly one company in the PQC field.Companies in the UK andSwitzerlandtendtobehardware-focused,asarem

100、anycompaniesinthe EU member states.The core quantum security companies inRussia,Israel,India,Japan,SouthKorea,andAustraliaalsotendtobehardware-focused.DownstreamThe downstream of the industrial chain consists of the demanders andusersofquantumsecurityproducts.Currently,thedownstreamapplicationof qua

101、ntum security technology is still in the exploratory stage ofpromotingthepossibilityofindustryapplication.Theorganizationsdisplayedinthisdownstreamquantumsecurityindustryarecomposedoftwoaspects:One type is the organization that directly purchases quantum securityproducts or services.For example,some

102、 state departments related tonational defense were among the early purchasers of quantum securityequipment;Theothertypeistheorganizationthathasademandforquantumsecurityproductsbutalsocollaborateswithquantumstart-upcompaniestodevelopproductsorservices.Forexample,asmostdeploymentsofQKDarebasedonexisti

103、ngopticalfibercommunicationnetworks,thereisacooperationbetweenQKDsuppliersandcommunicationprovidersthatownopticalfibercommunicationinfrastructure.HuaweiandSpainstelecomonceconductedalivetrialofquantumcryptographyonacommercialopticalnetworkusingSDN.Therefore,companiesrelatedtocommunicationwillalwaysb

104、eamajordownstreamapplicationparty.Although the future usage of all infrastructure is still difficult topredict in full,the main applications have been basically determined.Thedownstreamcompanies/organizationsaremainlyunitswithhighdemandforinformationsecurity,suchasnationaldefense,military,financiali

105、nformation,energynetworks,datacenters,intelligentdriving,mobileoperators,individualconsumers,etc.Currently,thedownstreampurchasers/suppliersarestillgovernmentandmilitarydepartments,largecompanies,andindividuals.AsthedevelopmentofQKDnetworktechnologyadvances,terminaldevicestendtobecomemorecompactandm

106、obile,andQKDwillalsoexpandtobroaderapplicationssuchastelecomnetworks,enterprisenetworks,individualsandfamilies,cloudstorage,etc.Office/Industrial Internet/Smart PhoneTelecomOtherDefenseEnergy GridFinanceV2X|Version Feb 2023Exhibit 2-4 Quantum Communication and Security Downstream-ApplicationsCompany

107、 Analysis03QKD has been applied in many countries and industries.Althoughmanytechnicalsuppliershaveemerged,thestandardizationofthePQCalgorithmisstillinprogressandmarketfeedbackforactualproducts is still needed after the standard is published.Thisevaluationismainlyfocusedonsupplierswhohavetheabilityt

108、oprovideacompleteQKDsystemsolution.|Version Feb 2023Note:The purpose of the supplier evaluation is to provide information on the current state of the company to the purchasing party and wide-ranging industry participants(such as investment organizations)to aid decision making.The Cutting-edge Tech F

109、an(CTF)model of future technology evaluation is used to assess suppliers from multiple dimensions including technology(including technology readiness and R&D technology reserves),market(market development and market share),and comprehensive accumulation of the enterprise.Basedonthedefinitionofthefou

110、rtiersegmentsaccordingtotheCTFmodel,thefollowingistheevaluationofQKDfieldsuppliers:Analysis of QKD VendorsExhibit 3-1 QKD Vendors EvaluationQaskyQuantumCTekIDQTOSHIBAQNu-LabsQUDOORQETCSPEQTRALKEEQUANTLUXQUANTAQuintessence LabsThinKQUANTUMQUANTUM OPTICS JENA“Pilot represents a company with a pioneeri

111、ngspirit in the industry.Without a doubt,ToshibaEurope Research Company is the largest in all QKDcompanies,withdeepaccumulationsinsemiconductors,information,electricity,industryand other fields.Since 2003,it has co-developedQKD-relatedtechnologieswiththeCambridgeUniversity Research Institute and con

112、ducted QKD-relatedbusinessesinmanycountriessuchasEuropeandJapan.Overtaker refers to companies that have strongovertaking abilities in their respective field,suchasSwisscompanyIDQ,ChinasQuantumCTekandQasky,andAustraliasQunatessenceLabs,whicharemain suppliers in this field.Their products areusedinbuil

113、dingtheinfrastructureofQKDnetworksin their own countries and even some foreigncountries,andtheirreliabilityhasbeenproveninpracticalscenarios.However,theinternationalization of the two Chinese companiesis clearly not as developed as Toshiba and IDQ,which may be due to the current internationalcompeti

114、tion and blockade environment in China.ComparedtoToshibasEuropeancompany,thecompaniesinOvertakerneedmoretimetoaccumulatein terms of supply chain,marketing channels,andR&D personnel.But in the competition for QKDproductsandtechnologies,theyarenowonparwithToshiba,which is the result of their rapiddeve

115、lopment.PilotOvertakerChance-seeker refers to participants with keenbusinessacumenwhohavejustenteredtheindustry.Currently,companies in the field of quantumcommunication and security have been supported bythe key state in many major quantum technologycountries,andtheirtechnologyisderivedfromtopuniver

116、sities or scientific research institutes intheir respective countries.These companies areseeking opportunities in the market and trying toestablishafootholdintheindustry.Explorer refers to suppliers that have enteredthe field but still have limited scale,withacceptable technology and some supply exp

117、erience,but there is still much untapped market for QKD.These companies lack marketization and still haveroom for improvement in technology.For example,Singapores SpeQtral company is currently focusedon satellite QKD,which has fewer competitorscomparedtofiberQKDcompanies.Thecompanyneedstohavetheabil

118、itytooperateinthespacefield.If there is a large-scale deployment of QKDsatellites in low orbit in the future,SpeQtralsbusiness will grow significantly.The companyssatellite plan will be launched in 2024,whichrepresents more commercialization processes in thefollowingtime.ExplorerChance-seekerToshiba

119、 Europe in the UK has quantum communication technology derivedfrom its Quantum Information Group(QIG)at its Cambridge laboratory.The companys current business involves semiconductor and storagesolutions,rechargeable batteries,digital solutions,railway systems,etc.,and quantum technology has yet to d

120、evelop as the companys mainbusiness.IDQ in Switzerland has technology derived from the Applied PhysicsLaboratory at the University of Geneva,founded by a professor in thefieldofquantumcryptographyattheuniversity.ThecompanyscurrentthreemajorproductsstillrevolvearoundQKDandrelatedtechnologies.QuantumC

121、Tek in China had technology derived from the University ofScienceandTechnologyofChinaduringitsinception,withtheinitialproduct being quantum cryptography applications.However,the companynowhasaquantumcomputingprototype,providinganimportantfoundationfor the future integration of quantum communication

122、and quantumcomputing.QuantumCTek has also developed in the quantum cryptographyproduct field,with the development of core components,networkingsupportingproducts,andquantumscienceeducationproductsinadditiontoQKDsystemequipment.TechnologyTo provide a broader analysis of the development of global core

123、 QKDsuppliers,the following companies-Toshiba Europe,IDQ,andQuantumCTekareanalyzedasfollows:It should also be noted that QKD products are currently classified ascryptographicproductsinsomecountries.Theimportandexportcontrolregulations for cryptographic products in countries such as the UnitedStates,

124、theUnitedKingdom,andChinaarenotentirelythesame.Asanewgenerationofcryptographicproducts,theregulatoryrequirementsforQKDmaylagbehindinsomecountriesorregions,whichmayalsobeafactorintheinabilitytopromoteproductsacrossborders.ToshibaEuropecanrelyonalargeamountofresourcesaccumulatedinthepastingovernmentpu

125、blicrelations,supplychainconstruction,anddistribution channel construction.The longstanding TOSHIBA(listedcompany)brandcanprovidesignificanthelptothecompanyinpromotingitsproducts.IDQhasdevelopedglobalinfluenceamongquantumtechnologyenterprisesover the past twenty years and has sales offices,engineeri

126、ng,development,andresearchlaboratoriesinGeneva(headquarters),Boston,andSeoul,SouthKorea.AfterbeingacquiredbythelistedcompanySKTinKorea,itcanexpanditsbusinessandtechnologybyleveragingSKTscommerciallayout。QuantumCTek,which has been developing for more than 10 years,waslisted on Chinas Science and Tech

127、nology Innovation Board in 2020,becoming Chinas first pure quantum technology listed company andattractinggreatmarketattention.SincebothToshibaEuropeandIDQareEuropeancompanies,theyinevitablyneedtoexpandtheirproductsalesoutside their home markets and seek broader markets on the Europeancontinent,Nort

128、hAmerica,andevenglobally.QuantumCTekcurrentlyhasawide network of cooperative relationships in China,including upstreamsuppliers and downstream industry application partners.Additionally,Chinahasalargedomesticmarket,providingQuantumCTekwithampleroomfordevelopment.Market Channel|Version Feb 2023Note:T

129、heabove-mentionedcompaniesonlyrefertothoseestablishedforthepurposeofquantumtechnology.QKDisonlyoneofthebusinessesofToshibaEuropeandisnotwithinthescopeofcomparison.20082009200002020221InadditiontothethreeQKDcompaniesanalyzedabove,therearemanystart-upsthatfo

130、cusonQKDtechnology.Comparingthecountrieswheretheyarelocatedandtheirfoundingdates,itcanbeseenthattheywereroughlyfoundedinthreetimeperiods:ThefirststagewaswhenQKDtechnologyachievedsuccessintheexperimentaldemonstrationstageandQKDengineeringmachinesbegantotakeshape;ThesecondstagewaswhentheUS,UK,andEUwid

131、elylaunchednationalplansforquantumimplementation;Thethirdstagewaswhenquantumcommunicationandsecuritytechnologybegantobeappliedinacertainrange.Exhibit3-2QKDCompanyComparisonQuantum Communication and Security CompaniesTEUR,shortforToshibaEuropeLtd.,wasfoundedintheUKin1998asaglobalR&Dorganizationestabl

132、ishedbytheJapanesecompanyToshiba.Itconsistsoftwolabs,theCambridgeResearchLaboratory(CRL)intheUK,whichfocusesonbasicandappliedresearchinphysics,engineering,andcomputerscience,andtheTelecommunicationsResearchLaboratory(TRL)inBristol.TEURisapartneroftheUKQuantumCommunicationsHubandisinvolved in establi

133、shing the UK Quantum Network(UKQN)and developingquantumcommunicationindustrystandardsfortheEuropeanTelecommunicationsStandardsInstitute(ETSI).InadditiontoQKD-relatedfields,ToshibaleadstheISCF-fundedAQuaSecprojectinthePQCfield.TEURhasestablishedaquantumtechnologybusinessdivisiontocommercializeitsquan

134、tumcommunicationtechnology,andinOctober2020,itreleaseditsfirstQKDproduct,whichhasbeendeployedinnetworksintheUK,Europe,theUS,Japan,andSouthKorea.In2022,Toshibaanditsaffiliatedcompanies,togetherwithorganizationssuchasBTandEYintheUK,KTinSouthKorea,JPMorganChase and Ciena in the US,Nomura Holdings and N

135、omura Securities inJapan,and the National Institute of Information and CommunicationsTechnology in Japan,achieved significant progress in building andtestingQKDsystems,downstreamapplicationtestinganddevelopment,andplayedaroleinpromotingthereleaseoftheinternationalstandardforQKD(intheQoSfield).Toshib

136、aEuropeLimitedIDQ,shortforIDQuantique,wasestablishedin2001.ItsmainproductsincludeQKDequipment,QRNGchips,andsingle-photondetectors.In2022,IDQ made progress in all three product areas.In the QKD field,itlaunchedtheClavisXGseries,withaproductkeygenerationrateof100kb/sandamaximumcodedistanceof150km,serv

137、ingasalong-distanceand backbone network QKD solution.In the QRNG field,it plans tocontinue its collaboration with SKT and release smaller,cheaper,andhigher-performanceproductsin2024,comparedtothecurrentchipsizeof2.5mm x 2.5mm x 0.8mm,for development and application in IoT,V2X,finance,andotherfields.

138、ItalsolaunchedQRNGchipsforspace,capableof withstanding extreme space radiation.QRNG also combined with thetechnology of Frances PQC company CryptoNext Security to develop asolutionformobileuserstoprovideeffectiveandlong-termquantum-safecommunicationforvarioustypesofgovernment,business,andorganizatio

139、nstomanagesensitivecommunicationforspecificgroups(suchasexecutionteamsand/orspecificprojects).IDQ also provides QKD products for fiber optic networks to the Frenchtelecommunications company Orange,which is part of the Paris RegionQuantumCommunicationInfrastructure(ParisRegionQCI)project.IDQuantiqueS

140、AThecompanywasfoundedin2016andislocatedinBristol,UK.Itisaspin-offcompanyoftheQuantumEngineeringTechnologyLabs(QETLabs)attheUniversityofBristolandanindustrialpartneroftheUKNationalQuantumTechnologyProgrammesQuantumCommunicationsHub.ThecompanysmainproductsareQKDequipmentandQRNG(currentlyinnon-chipform

141、).ThecompanyhasaninternationalofficeinParisandisinvolvedintheThales CyberStation program and the ParisRegionQC located in France,collaboratingwithFrenchtelecommunicationscompaniesOrangeandThalestobuildtheParisQuantumSecurityNetwork.KETSQuantumSecurityLimitedQuantumCTek,foundedin2009,isthefirstquantu

142、mtechnologycompanyinChinatogopublicontheScienceandTechnologyInnovationBoard.Thecompanyscurrentbusinessisnotlimitedtoquantumsecurecommunication,andithasalsodevelopedanengineeringprototypeofaquantum computer.The companys secure communication products mainlyinclude four categories:quantum secure commun

143、ication network coreequipment(QKDproducts,quantumsatelliteminiaturizedgroundreceivingstations,channel and key networking exchange products,etc.),quantumsecurity application products(fixed network encryption applicationproducts,mobileencryptionapplicationproducts,etc.),corecomponents(single photon de

144、tectors,quantum random number sources,etc.),andquantumsecurecommunicationnetworkmanagementandcontrolsoftware.In 2022,the companys important events in the field of quantumcommunicationareasfollows:thedevelopmentofaprototypeoftheNewGenerationQuantumSatelliteGroundReceivingStationwascompleted,andexperi

145、ments were conducted with the Jinan No.1 micro-nano satellite;thedevelopmentofhigh-performanceencodingopticalchipswascompleted.ThecompanyparticipatedintheformulationofChinesestandardsforKeyDevices and Modules for Quantum Key Distribution(QKD)Based on BB84ProtocolPart1:LightSource,KeyDevicesandModule

146、sforQuantumKeyDistribution(QKD)Based on BB84 Protocol Part 2:Single PhotonDetector,Terms and Definitions for Quantum Communication,QuantumSecure Communication Network Architecture,Technical Requirements forNetwork Management of Quantum Key Distribution(QKD)Network Part 1:Network Management System(NM

147、S)Function and Technical Specificationfor Quantum Secure Communication Application Equipment Based on IPSecProtocol;and participated in the formulation of the internationalstandardISO/IECSecurityRequirements,TestingandEvaluationMethodsforQuantumKeyDistribution.QuantumCTekQUDOORwasfoundedin2019andist

148、hefirstiontrapquantumcomputingcompanyinAsia.QUDOORisdedicatedtothedevelopmentandapplicationof ion trap quantum computers and quantum communication technology,providing products and services to meet the needs of users in theprocessing of massive data and secure information transmission.Thecompany has

149、 applied for and been granted over 350 patents and hasparticipated in the development of more than 20 national and industrystandards in the field of quantum information,such as TechnicalRequirementsforQuantumKeyDistribution(QKD)SystemPart1:QKDSystemBasedonDeceptionStateBB84ProtocolandTestMethodforQu

150、antumKeyDistribution(QKD)System Part 1:QKD System Based on Deception StateBB84Protocol.In the field of quantum communication,QUDOOR currently provides userswith more than 20 products and solutions,including quantum securecommunicationterminals(QKD),quantumrandomnumbergenerators(QRNG),key management,

151、network switching/routing,quantum servers,quantumgateways,mobileencryptiondevices,corecomponents,etc.In2022,anewgeneration of QKD,PCIe-QRNG,API gateways and other products havecompleteddevelopmentandcertification.QUDOORhasalreadyestablishedbusinesspartnershipswithleadingcompaniesinvariousindustriess

152、uchas communication,cloud computing,infrastructure construction,energy,informationsecurity,andfinance,includingChinaBroadcastingNetwork,ZTE,Shenzhen Digital Kingdom,Alibaba Cloud Eco-Partners,ChinaFinancialAuthenticationCenter,StateGrid,GACGroup,andmore,aroundquantum computing,quantum cryptography a

153、pplications,secure cloudinfrastructure,etc.QUDOORQNuLabs was founded in 2016 at the IIT-Madras research park and begancommercialoperationsinBangalorein2017.ItisIndiasfirstcompanyto offer quantum network security products.QNuLabs has three mainproductlines:QKD(Armos),QRNG(Tropos),andPQC(Hodos).Thecom

154、panyalso sells its Qosmos product(Quantum Key Generation as a Service,EntropyasaService)ontheAWSMarketplace.In 2021,the company demonstrated differential phase-shift quantum keydistribution at a distance of 105 km from its Bangalore R&D lab,generating 10-15 secure AES keys per second.In 2022,the com

155、panysuccessfullyenteredtheIndianArmysprocurementlist.InadditiontoitsoperationsinIndia,thecompanyestablishedasubsidiary,QNuLabsInc,inMassachusetts,USAin2019throughapartnershipwithQuantumBlockchainsinPoland,withplanstoexpanditsbusinesstoEuropeandtheUSandestablishpartnershipsforsatellite-basedQKDtechno

156、logy.QNuLabspartnersincludeLetsSolve,airticle,QuantumAllance,Cystel,CISCO,ThalesAccelerate,UrbanMatrix,amongothers.QNULabsPrivateLimitedThecompanywasestablishedin2021andislocatedinSarsego,Italy.Itis a spin-off company of the University of Padua and was founded byacademic founders,including Officina

157、Stellare Spa(a company thatdesigns and manufactures complex optical and aerospace instruments forground and space applications).Most of the founders come from theQuantumFutureresearchgroup,whichhasa20-yearbackgroundinquantumoptics,photonic quantum information processing,quantum communication,quantum

158、keydistribution,andquantumrandomnumbergeneration.QuantumFutureistheonlypartnerinItalyoftheOPENQKDproject,whichimplements various QKD test platforms and use cases throughout Europe,andissupportedbytheItalianSpaceAgency,theEuropeanSpaceAgency,andtheEuropeanCommission.Thecompanyhasaccesstoresourcessuch

159、asPaduaUniversityslaboratoryandrelatedintellectualproperty.Itsmainbusinessistoprovidefiber-basedQKD,free-spaceQKD(theonlysolutionfor communication with moving platforms such as drones,high-altitudeplatforms,aircraft,andships),satelliteQKD,andpayloadsandgroundstations,aswellasQRNG.Thecompanycanprovid

160、ebatchQKDproducts,with a fully EU27 supply chain,and its QKD and QRNG systems werelaunched in the market in 2022.The company is collaborating with theleader in the protected multi-cloud storage field,fragmentiX StorageSolutions,onQKD.ThinkQuantumSRLThecompanywasfoundedinSingaporein2017,withafocusond

161、esigningandmanufacturingsatellite-basedquantumcommunicationQKDsystems.ItoriginatedfromateamattheCentreforQuantumTechnologies(CQT)attheNationalUniversityofSingapore,andcurrentlyhasover20full-timemembers.Theteampreviouslydemonstratedaminiaturizedentangledphotonsourceinspace.In 2022,the companys main a

162、ctivities revolve around QKD satellitecommunication and collaborations with various organizations.They havealsoconductedsomeground-basedQKDtestsanddemonstrations,includingannouncingtheupcominglaunchoftheQKDsatelliteSpeQtral-1in2024;partnering with Belgian company RHEA System Luxembourg to demonstrat

163、eintercontinental QKD;launching Southeast Asias first quantum networkexperience center(QNEX)in Singapore in collaboration with ToshibaDigitalSolutionsCorporation;conductingexperimentsusingSingaporeSTEngineeringsquantumencryptorandToshibaDigitalSolutionsCorporations QKD system on the fiber network of

164、 Singaporean telecomcompanySPTel;signingamemorandumofunderstandingwithGermancompanyRivada Space Networks to demonstrate the communication security andtechnicalcompatibilityofalowEarthorbitsatelliteconstellationwithSpeQtral-1added,andtoverifythespaceandgroundstationterminalsrequiredtosupportQKDencryp

165、tiontrafficontheRivadaSpaceNetworksconstellation;andsigningamemorandumofunderstandingwithAntaris,aUS-basedspacestartupthatprovidessoftware-definedsatelliteplatforms,tohostSpeQtralsairbornequantumsecuritysoftwaresandboxinAntaristechnologydemonstrationsatellitemission.SpeQtralPteLimitedKEEQuantwasesta

166、blishedin2020andisbasedinBavaria,Germany.Thecompanys main business is QKD products,including continuous variablequantumkeydistributionsystems(CV-QKD)basedonopticalfibersandkeymanagementsystems(KMS)innetworks,servingthedatacenter,network,defense,andsecurityfields.Thecompanysfundingcomesentirelyfromth

167、e EU27(the 27 member states of the European Union).KEEQuant is aparticipantintheEuroQCI(EuropeanQuantumCommunicationInfrastructure)project and is coordinating the SEQRET project.It hasalso participated in the standardization and certification work of theEUsOpenQKDproject.KEEQuantGmbHLuxQuantawasfoun

168、dedin2021andisheadquarteredinBarcelona,Spain.Itisaspin-offfromICFO(TheInstituteofPhotonicSciencesinSpain)andwasincubatedthereforoverfouryears.Theteamcurrentlyconsistsof14people,withmostofthecompanysshareholderscomingfromEurope,givingEuropefullcontroloverthecompany.LuxQuantasmainproductisthe CV-QKD s

169、ystem,which provides QKD systems and technology to beintegratedintoexistingnetworkinfrastructures,providingquantum-safesecuritylayermathematicalencryptiontechnologyontop.LuxQuantaispartoftheEUDigitalProject,whichaimstoachievethedigitaltransformationofEuropeansocietyandeconomythroughadvanceddigitalte

170、chnologiessuchassupercomputing,artificialintelligence,andnetworksecurity.ApartoftheDigitalProjectistodevelopandmatureQKD technology,deploy European QKD links,and build European quantumcommunicationinfrastructure.ThecompanysQKDsystemwasfirsttestedin2022,witha30kmpoint-to-point fiber optic quantum com

171、munication link established between ICFOheadquarters(Castelldefels)andtheCatalangovernmentCTTIheadquarters(HospitaletdeLlobregat).ThiswasthefirststepindeployingaquantumnetworkinBarcelona.LuxQuantaTechnologiesS.L.QEYnetwasfoundedin2016andislocatedinToronto,Canada.Thecompanywascreatedbyspacecraftengin

172、eersandquantumcommunicationexpertsandfocuses on the development of QKD small satellites with the aim ofestablishing a global,low-cost,and micro-satellite-supported quantumkey distribution network.QEYnets QKD technology is derived from theInstituteforQuantumComputingattheUniversityofWaterloo,whichhas

173、receivedfundingofover$7millionfromtheCanadiangovernment.QEYnetINC.QBirdwasfoundedin2022andislocatedinDelft,Netherlands.Itisaspin-off of QuTech,a Dutch quantum computing company,providing basicbuilding modules for quantum communication infrastructure in theNetherlands and Europe.QBird is also part of

174、 the Quantum Delft andQuantum Delta NL ecosystems and a participant in the National QuantumNetworkPlan(QuantumDeltaNL)andQuantumInternetAlliance(QIA).ThecompanymainlyprovidesQKDtechnology.Q*Birdstechnologyteamhasyearsofexperienceindeliveringnext-generationquantumprototypesystemsandprojects to indust

175、rial and commercial partners.They operated as anengineering team within QuTech for three years,during which theydesignedandbuiltnext-generationQKDprototypesystems.Thesesystemshavebeentestedwithindustrialpartnersinrelevantfields.QBird is currently deploying QKD prototype systems with commercialpartne

176、rs in finance,telecommunications,and data centers across theNetherlands,includingEurofibersUtrechtregionalnetwork.Thetestingplatformisopentonewpartnerstoexplorethepossibilityofquantum-securedcommunication.QBirdsnext-generationsystemwillbelaunchedatthe Port of Rotterdam,connecting users to the ports

177、data sharingplatform Portbase and two to three other maritime logistics companieslocated in Rotterdam.The project is two-thirds funded by the QuantumDeltaNLSMEprogramandone-thirdbythePortofRotterdam,andQ*Birdis collaborating with Dutch superconducting nanowire single-photondetectorcompanySingleQuant

178、uminthisproject.Q.BirdB.V.QuantumOpticsJenawasfoundedin2020andislocatedinJena,Germany.Leveraging years of research experience in quantum optics,as well asaccumulatedexpertiseinprecisionoptics,mechanics,andoptoelectronicsin applied science and industry,the company offers high-performanceentangled pho

179、ton sources,fiber-based and satellite-based QKD systems,quantumimagingsystems,andphotoniccomponentsandsystemsforquantumnetworks(polarizationanalysismodules),providingsolutionsforcommunication,biomedicalimaging,andthescientificcommunity.Located in the state of Thuringia,Jena is renowned for photonics

180、 andopticaltechnology,hometotheFraunhoferInstituteforAppliedOpticsandPrecisionEngineering(FraunhoferIOF),providingfavorablegeographicalpositioningforthecompanystechnologicaldevelopment.Interms of business expansion and partnership network,the company is amember of the Quantum Business Network(QBN),t

181、he European quantumbusinessnetwork.QuantumOpticsJenaGmbHArqit was founded in 2017 and is headquartered in the UK with asubsidiaryintheUS.ItwentpublicontheNASDAQthroughaSPACmergerin 2021,becoming one of the few quantum technology companies to bepublicly traded.The companys product is the QuantumCloud

182、 quantumencryptioncloudplatformsoftware,developedincollaborationwiththeUKgovernment,BT,andVirginOrbitoverfouryears.Inthe2022fiscalyear,thecompanyhadarevenueof$20million,with$7.2 million coming from five contracts for QuantumCloud and$12.8million from other business revenue from contracts with the Eu

183、ropeanSpace Agency.Administrative expenses for the year were$72.2 million($14.6millionin2021),withemployeecostsaccountingforasignificantportion of the increase due to a growth in headcount from 73 to 145employees.Theoperatinglosswas$52.1million($172.6millionin2021),but Arqit also gained$21.3 million

184、 in cash from the exercise ofwarrants.Arqit has expanded its business by collaborating and deploying itsproducts in private cloud infrastructure,cloud storage platforms,andhardware.This includes integration with Fortinets next-generationfirewall Fortigate series,a contract with UK cybersecurity solu

185、tionprovider Nine23 to provide services on Nine23s UK Sovereign SecurePrivate Cloud Infrastructure Platform Flex through the G-Cloud 13framework,deployment on Amazon Simple Storage Service(Amazon S3)foruse by AWS customers,and pre-installing products on selected DellhardwaredevicesforsaleasasingleSK

186、U.ArqitQuantumINC.Infrastructure Development04In2022,thedevelopmentofquantumcommunicationnetworkinfrastructureincountriessuchastheUnitedStates,Canada,UnitedKingdom,France,SouthKorea,China,Poland,India,andothershasfurtherprogressed.Thefollowingisasummaryofrelateddevelopments.In May,the Brookhaven Nat

187、ional Laboratory(BNL)in the United StatesDepartment of Energy launched a new quantum network facility thatprovidesresearcherswiththetoolsandcapabilitiesneededtomakelarge-scale quantum entanglement distribution networks a reality.The newfacilityalreadyhasoneofthemostadvancedregionalquantumnetworksint

188、heUnitedStatesandispartofthelongestquantumnetworkintheUS,spanning 98 miles and connecting the two institutions affiliatedcampuses,which is being completed by BNL and Syracuse University.InJune,the Chicago Quantum Exchange(CQE)at the Pritzker School ofMolecularEngineeringattheUniversityofChicagoconne

189、ctedChicagocityand suburban laboratories to the quantum network,building a 200-kilometer QKD network that distributes quantum keys at a rate of over80,000 quantum bits per second via fiber optic cable.The Chicagonetwork,which will be one of the first publicly available quantumsecurity technology tes

190、t platforms open to the academic and industrialcommunities,is expected to become one of the first public quantumsecurity technology test platforms in the United States.The entirenetwork currently consists of 6 nodes and transmits particles carryingquantum-encoded information between two buildings in

191、 Argonne NationalLaboratory and the south side of Chicago(the headquarters of the CQEnear the University of Chicago campus and Hyde Park).In June,theIllinoisRapidQuantumNetwork(IEQNET)researchteamdeployedaquantumnetworkbetweentwoEnergyDepartmentlaboratorieslocated50kilometersapart in Illinois and si

192、multaneously transmitted a conventional clocksignal and a quantum signal on the network.The two signals remainedsynchronized within a window of less than 5 picoseconds,an importantsteptowardsbuildingpracticalmulti-nodequantumnetworks.USA:Despitetheabsenceofalarge-scalenationalinfrastructureplan,thed

193、evelopmentofQKDapplicationresearchisstillunaffected.InSeptember,theconstructionofquantumcommunicationnetworkinfrastructurewascarriedoutinthestateofThuringia(oneofthe16federal states in Germany)with the support of Thuringia ScienceDepartment with an allocation of 11 million euros.The Institute ofAppl

194、iedOpticsandPrecisionEngineering(IOF)anditspartners,withthesupportoftheFederalMinistryofEducationandResearch(BMBF),builtand tested the first-ever quantum communication network over a 75 kmfiber QKD.This line connected the IOF in Jena and the Center forBioelectronicsandOpticalSystems(MEOS)inErfurt.Ov

195、er300,000quantumkeysweresentbetweenthetwolocations.ThisexperimentwasalsothefirstphaseoftheconstructionofQuNET(QuantumCommunicationNetwork),aresearchprogramfundedbytheBMBFandparticipatedinbyfourcoreresearch institutes:IOF,the Heinrich Hertz Institute(HHI),theCommunication and Navigation Research Inst

196、itute(DLR-IKN),and the MaxPlanckInstituteforLightPhysics.Germany:A75kmfiberQKDconnectionhasbeenestablishedbetweenresearchinstitutesinFrohnauandErfurt.InJune,thenon-profitorganizationNumanainQuebec,Canadaopenedaquantum communication infrastructure in Sherbrookes Quantum InnovationZone.The facility pr

197、ovides a fiber quantum communication testingplatform for industry and researchers.The project cost 3.75 millionCanadiandollarsandwassupportedbya2.5millionCanadiandollargrantfromQuebecsDepartmentofEconomyandInnovationandtechnicalsupportfrom the communications company Bell.The Quebec government plans

198、toestablish networks in Montreal and Quebec City,gradually deploying aninfrastructure quantum ecosystem connecting the entire province ofQuebec.Canada:TheQuebecgovernmentopensanewfiberquantumcommunicationtestingplatformforindustryandresearchers.In October,the ParisRegionQCI(Quantum Communication Inf

199、rastructureproject)led by French telecom operator Orange deployed a quantumcommunicationnetworkfortestingsecurecommunicationsolutionsbetweenSaclay,Chtillon and Paris.The network will be established betweenlarge groups,start-ups,LIP6(Paris Computer Science Laboratory),optical institutes,and Paris Tel

200、ecom.The project was funded with 1million euros by the le-de-France region and is the first quantumcommunication network in the region.The project relies on IDQuantiquesQKDsolution,ThalessIPsecMistralencryptiongateway,andcollaborationswithinstitutionssuchasthecolePolytechnique.France:Connectiontests

201、betweensomenodesinParishavebeencompletedinaquantumcommunicationinfrastructureproject.InSeptember,a380kminter-cityQKDlinkwasestablishedbetweenthecitiesofWarsawandPozna.ThelinkispartoftheNationalQuantumCommunicationInfrastructureProjectdevelopedbytheNationalLaboratory of Photonics and Quantum Technolo

202、gies(NLPQT)and is acollaborationbetweenPoznaSupercomputingandNetworkingCenter(PSNC)and the Swiss company IDQ.The link will serve multiple applicationsincludingremotehealthcare,medicaldatatransmission,datastorageandpublic services.PSNC aims to further integrate its subway QKDinfrastructuredevelopedin

203、Poznain2021withthisnewlong-distancePozna-Warsaw QKD link,with the ultimate goal of connecting all ofPolands high-performance computing centers and establishing a generalaccesslayerforQKDservices.Poland:A380kmQKDinter-cityinfrastructurelinkhasbeenbuiltbetweenWarsawandPoznan.InFebruary,theQuantumCommu

204、nicationsCenterfundedthefirstquantumcommunicationnetworkprojectinnorthernEngland.TheprojectwilluseCV-QKD technology to deploy a quantum secure network between fourstrategic interconnection points between York and Manchester via LeedsandHalifax.UK:TheNorthregionimplementsthefirstquantumcommunicationn

205、etwork,connectingYorkandManchester.In August,the Hefei Quantum Metropolitan Area Network was launched,which is currently the largest,most user-friendly,and comprehensivequantumsecurecommunicationmetropolitanareanetwork.ThenetworkwasconstructedbyChinaTelecomQuantumandthecoreequipmentwasprovidedby Qua

206、ntumCTek.The network consists of 8 core sites and 159 accesssites,withatotalfiberlengthof1147km.Itprovidesquantumsecureaccessservicestonearly500partyandgovernmentorganizationsatthecity and district levels.The network will also serve the financial,energy,medical,andtechnologyindustriesinthefutureandi

207、sexpectedto expand to four counties and one city,connecting to the nationalquantumbackbonenetwork.China:TheHefeiQuantumSecureCommunicationMetropolitanAreaNetworkisnowopen,withatotallengthof1147kilometersand159accesspoints.In August,the Indian army successfully trialed the distribution ofsecurekeysov

208、er150kmviatheQKDsystemfromQNuLabs.TheIndianarmyhasaddedQNuLabstoitsprocurementlistandbegunpurchasingtheArmosQKDsystemdevelopedbythecompany.India:TheArmyGroundFiberInfrastructurehassuccessfullyachievedover150kilometersofquantumkeydistribution.InJuly,SKBroadbandandIDQsuccessfullycompletedthefirstphase

209、oftheconstructionofan800-kilometerlongQKDnetworkinfrastructureinSouth Korea.This network connects 48 government organizations in thecountry,providing secure protection for sensitive information andcommunications.ItisthelargestquantumcryptographynetworkoutsideofChina.Korea:ThefirstphaseoftheQKDNetwor

210、kInfrastructureprojectiscomplete,connecting48governmentorganizations.Investment Overview05Currently,thefieldofquantumcommunicationandsecurityisstillafuturetechnology,andthischapterfocusesmoreonthestart-upsestablished for this purpose.Many traditional network andinformationsecuritycompanieshaveventur

211、edintoquantumcommunication and security research and business,but thesecompanies have accumulated sufficient capital through long-termcontinuous operation,and they hardly need venture capitalinjection.Quantum start-ups,especially companies focused onhardware research and development,have few collate

212、ral assets inthe early stages of their establishment,and research anddevelopmentcarriesrisks.Therefore,bankloansarelesscommon,andtheymainlyrelyonventurecapitalandgovernmentfundingtosupporttheirinitialdevelopment.Regardingthescopeofthestatisticalamount,inadditiontofundsfrom venture capital firms(this

213、 chapter does not delve intowhether venture capital is government industry guidance funds),start-ups also obtain investments from the government throughprojects organized by the government(for example,the USDepartment of Energy or the UKRI provides funding/prizes,etc.).These two types of funding sou

214、rces sometimes exist in a singleround of financing,and it is impossible to distinguish them indetail.Therefore,investmentsfromventurecapitalfirmsandfundsdirectlyinvestedbythegovernmentintocompaniesareincludedinthiscalculation.Thisfinancingdataisbasedonpublicinformation,and some companies do not disc

215、lose their investmentsituationorinvestmentamount,whichwillnotbeincludedinthecalculationscope.Somecompaniestechnologiesandbusinessesnotonly involve quantum communication and security but may alsoinvolvequantumcomputingorquantumprecisionmeasurement,andthedisclosed investment amount often does not spli

216、t into exactresearchdirections.ThecurrencyoffundsismainlyinUSdollars,andtherearealsoeuros,pounds,Australiandollars,RMB,Koreanwon,andrupees.Thecalculatedamountdoesnotconsiderinflationandexchangeratefluctuations.Insummary,theremaybedeviationsintheactualinvestmentamountreceivedbythequantumcommunication

217、 and security industry,and the above situationsshouldbeconsideredwhenusingthedata.Themaincharacteristicsoffinancingin2022areasfollows:20202021Exhibit5-1Thetotalamountoffinancingintheglobalquantumcommunicationandsecurityfield(2020-2022)(Unit:Million USD)Compared to 2021,the financing in the field of

218、quantum communication and security significantly decreased in 2022.2022163.45842.80395.79In2022,atotalof21startupsinthefieldofquantumcommunicationandsecurity raised approximately$396 million in funding,including threecompanies(IndiasQNuLabs,ChinasHefeiGuizhenQuantum,andChinasXanaduQuantum)whosefundi

219、ngamountswerenotdisclosed.Thisrepresentsa significant decline in funding compared to 2021(approximately$843million),whichwasboostedbytwolargefundraisingroundsfromUK-basedArqitandChinasQuantumCTek,accountingfor74.14%ofthetotalfundingfortheyear.However,in2022,nocompanyinthisfieldwentpublic,andthehighe

220、stamountoffundingcamefromUS-basedSandboxAQ,aspin-offof Alphabet(Googles parent company),which raised a nine-figure sum(exactamountundisclosed,assumedtobe$100million).Inadditiontotheimpactofthesehigh-valuefundingrounds,otherfactorsmayalsobeatplay,suchasdelayeddeliveryoffundingandslowersalesduetotheon

221、goingCOVID-19pandemic.|Version Feb 2023 188.42 75.00 44.24 40.50 21.90 16.59 5.50 1.57 1.08 1.00Exhibit 5-2 Funding amount quantum communication and security sector in 2022(by country)(Unit:Million USD)In 2022,funded companies in the quantum communication and securityindustrycamefrom11countries,incl

222、udingtheUnitedKingdom,Denmark,the United States,Canada,South Korea,Germany,India,Russia,Australia,Switzerland,and China.Based on disclosed funding amounts(funding amount for Indias QNu Labs was undisclosed),the highestfundingamountwenttocompaniesintheUnitedStates(approximately$188million for 6 compa

223、nies),followed by Switzerland(approximately$75millionfor2companies),theUnitedKingdom(approximately$44millionfor4companies),andChina(approximately$41millionfor4companies).ThismaybeduetoahighernumberofquantumcommunicationandsecuritystartupsintheUnitedStates,greaterpolicyreleasesintheUSnetworksecuritys

224、ector,andmoreopenandactivecapitalmarketsinEuropeandAmerica.The funds are primarily invested in US companies,followed by Switzerland,the UK,China,and Australia.USSwitzerlandChinaUKCanadaGermanyDenmarkSouthKoreaRussiaAustralia|Version Feb 2023Seedround,SeriesCGovernmentfundingSeriesA(includingpre-A,A+

225、)SeriesB(includingB+)2,9%5,22%9,39%1,4%1,4%2,9%3,13%Exhibit 5-3 2022 Global Quantum Communication and Security Financing TypesAngelroundOthers(strategicinvestment,privateplacement,andconvertiblebond)This financing round is categorized by funding types,including angelround,seedround,SeriesA(including

226、pre-A,A+),SeriesB(includingB+),SeriesC,governmentfunding,andothertypesoffunding(strategicinvestment,private placement,and convertible bond).According to thefundingtypes,SeriesAreceivedthemostfunding(9times,accountingfor39%),followedbytheseedround(5times,22%).Thisindicatesthatmostofthefundedcompanies

227、areintheearlystageandstillhavesomedistancetogobeforegoingpublic.Thisalignswiththefactthatthequantumcommunicationandsecurityfieldisstillintheearlystageofdevelopmentasacutting-edgetechnology.The financing types are still mainly in the early stages,with seed and Series A rounds having the highest propo

228、rtion.|Version Feb 202320202029.6128.0917.21Exhibit 5-4 Number of Quantum Communication Investment and Financing Events and Average Event Amount Worldwide(2020-2022)(Unit:million USD)In2022,atotalof23financingeventsoccurredintheglobalquantumcommunicationandsecurityfield,whichislowerthanth

229、enumberin2021.Additionally,the average financing amount per event was around 17.21millionUSD,lowerthanin2021buthigherthantheaveragein2020.The total financing amount,number of financing events,and averagefinancingamountpereventin2022werealllowerthanin2021.ThisislikelyduetotheimpactofCOVID-19andtheslo

230、wdownofmacroeconomicgrowth.Governments around the world have invested a large amount offundstodealwiththepandemic,whichinevitablyaffectsthefundingfortechnological innovation and industrial development.As the pandemicentereditsthirdyear,thisconsumptionhadalreadyreachedacertainpeak.In2022,therewerefew

231、ercasesofcompaniesgoingpublicandlargeinvestmentdeals.The number of financing events in 2022 decreased from 30 in 2021 to 23.|VersionFeb2023Software(ex.QuantumSecurePlatform/Q-SaaS)209.16,53%35.8,9%150.83,38%PQCExhibit 5-5 Investment Distribution of Quantum Communication and Security in 2022Hardware(

232、ex.QKD/QRNG/LightSource)The companies in the quantum communication and security field can bemainly classified into three categories:those that develop productsbasedonquantumphysics(suchasQKD,QRNG,andlightsources),thosethatdevelopquantumcryptographicplatformproducts(Q-SaaS,cryptographicmanagementplat

233、form),andthosethatdevelopproductsbasedon mathematical algorithms(fully homomorphic encryption algorithm).Accordingtodisclosedinvestmentdata,in2022,6PQCcompaniesreceivedinvestment,including Cornami(USA),HEAAN CRYPTO LAB(South Korea),PQSecure Technologies(USA),PQShield(UK),Sandbox AQ(USA),andHangzhou

234、Liangan Technology Co.,Ltd.(China),receiving a totalinvestment of approximately$209 million.In 2022,11 quantum physicsencryption companies received investment,including Aegiq(UK),Alea-quantum(Denmark),Pixel Photonics(Germany),QNU Labs(India),QSpaceTechnologies(Russia),QuintessenceLabs(Australia),Qun

235、nect(USA),TerraQuantum(Switzerland),Hefei Guizhen Quantum(China),Shanghai XianhaiQuantum(China),andZhejiangJiuzhouQuantum(China),receivingatotalinvestmentofapproximately$151million.In2022,threequantumsoftwareplatformcompaniesreceivedthreefinancingdeals,includingArqit(UK),evolutionQ(Canada),andQuSecu

236、re(USA),receivingatotalinvestmentofapproximately$36million.Inthefuture,asPQCalgorithmstandardization becomes more prevalent,there may be some start-upcompaniesinPQCalgorithmapplications,andtheinvestmentratioinPQC,QKD,QRNG,andotherhardwarefieldsmayundergonewadjustments.The total financing amount for

237、hardware-based enterprises such as QKD and QRNG is higher than that of PQC enterprises.|Version Feb 2023In2022,countriesincludingChina,theUnitedStates,Canada,Finland,Australia,Singapore,Germany,theUnitedKingdom,andSouthAfricaareactivelyinvestinginthequantumfield,includingquantumcommunicationand secu

238、rity,to support the development of quantum technology.Majorgovernments have invested approximately$1.203 billion in the field,covering areas such as infrastructure construction,quantum education,talentcultivation,innovationdistricts,nationalquantumprograms,andindustrialdevelopment.Some policies are

239、specifically aimed at quantum communication andsecurity,suchasSingaporesNationalQuantumSecurityNetwork,whichispartoftheQuantumEngineeringProgramandaimstoconductexperimentsonquantumsecuritycommunicationtechnologyacrossthecountry,evaluatesecuritysystems,anddevelopguidelinestosupporttheadoptionofsuchte

240、chnologybycompanies.Theprojectplanstodeploy10nodesandwillreceiveSGD8.5millionoverthreeyears.Fundingpoliciesalsotargetquantumtalent,suchastheAustralianLaborPartyscommitmenttoprovidingAUD4milliontosupportthecultivationofquantumtalent,includingAUD3millionforthetrainingofquantumtechnology PhD students a

241、nd AUD 1 million for the establishment of anationalquantumresearchandeducationpartnershipbasedontheSydneyQuantum Academy model.In addition,the K12 Quantum Talent DevelopmentProgram,operated by the George Mason University Quantum Science andEngineeringCenterintheUS,hasreceived$650,000infundingfromthe

242、HouseAppropriationsBilltopilotquantumphysicscoursesinFairfaxandLoudoun County public schools and cultivate diverse quantum talent inNorthernVirginia.Nationalscienceandtechnologydepartments,nationalindustrydepartments,national innovation departments,national quantum researchcenters,national quantum r

243、esearch programs,national standards andtechnical research institutions,and local governments are the mainpolicymakersinthereleaseoffundingpolicies.Governments of multiple countries continue to invest in the field of quantum communication and security,focusing on industry,academic discipline developm

244、ent,and talent cultivation.Inadditiontonationalandlocalgovernmentsandinvestmentcompanies,professional societies also encourage the development of quantumtechnologybysettingupawards.Forexample,theInstituteofPhysics(IOP)in the UK has partnered with the investment firm QuantumExponential to launch the

245、qBIG innovation award,which offers a cashprizeof10,000andguidancefromacademicandindustryexpertstothewinners.Theseinitiativesdemonstratethecapitalseagernesstoinvestin quantum targets and provide another funding channel for start-upcompanies.Diversifying the sources of funding for the quantum industry

246、 can unlock its innovative and entrepreneurial potential,thereby contributing to the development of the industry.PolicyRelease06Asaguidingdocumentforindustrialdevelopment,policiesserveasacompassforthedirectionofindustryandarehighlyinfluentialandwidely promoted.In other words,once policies are releas

247、ed,theyneed to gradually affect all aspects of the industry.This chapterwillsummarizeguidingandfundingpoliciesinchronologicalorder,fromtheperspectiveofthenationalorinternationalorganization.Policies related to quantum communication and security are still mostly covered under the term“quantum informa

248、tion”.Currently,most policies still use the comprehensive term quantuminformation,with relatively less attention to the specific field ofquantumcommunicationandsecurity.Theremaybetworeasonsforthis:first,the three major technologies of quantum communication,quantumcomputing,andquantumprecisionmeasure

249、mentthatarewidelycategorizedinthefieldofquantumtechnologyarehighlytechnicallyrelated.Basedonthefuturedevelopmentvisionofcurrenttechnology,thethreemajortechnologieswillcomplementeachotherandmergetoformacomprehensiveeraofquantumInternet.Therefore,itisnoteasytoseparatethemtoomuch in actual development.

250、Second,even though the three majortechnologies of quantum communication,quantum computing,and quantumprecisionmeasurementhavealreadyhadalotofdevelopment,therearestill many branches to explore.It may be more targeted to separatepolicieswhenthebranchesareflourishing.QuantumInformationThe United States

251、 is leading the way in promoting the development of quantum information through legislative means,which remains unique among other countries.In2022,countriessuchastheUnitedStates,China,Finland,Singapore,Canada,the United Kingdom,Germany,Japan,the Netherlands,Spain,Australia,SouthKorea,andSouthAfrica

252、allissuedpoliciestopromotethefieldofquantumcommunicationandsecurity.Theformandtendencyofpolicyreleasesvaryamongdifferentcountries.TheUnitedStatestendstouselegislationtodrivescientificdevelopment,technologyresearchand development,and industrial development from top to bottom bypublishing bills with d

253、ifferent themes.Except for the United States,othercountrieshavenotyetintroducedsuchlegislation.Thisapproachis not only related to the governance and legislative habits of theUnitedStatesbutalsorelatedtothegoaloftheUnitedStatestoalwaysmaintain a leading position in quantum technology.In addition tona

254、tionalpolicies,theEuropeanUnionandNATOalsoissuedpoliciesin2022 to support the development of quantum communication and security.Overall,thefieldofquantumcommunicationandsecurityhascontinuedtodevelop sustainably with the support of policies,and this technologycontinuestobesupportedatthenationalandint

255、ernationalorganizationlevels.NationwidePromotionThe EU and NATO have both released policies supporting the development of quantum communication,but the EU has made greater overall progress in advancing these policies than NATO.IntheEU,aninvestmentof6billioneuroswasannouncedtoestablishsatelliteconste

256、llationinfrastructureandconnecttheEuropeanquantumcommunicationinfrastructure.IrelandsignedtheEuroQCIdeclaration,andall27EUmemberstateshavecompletedsigningit.Preliminarystrategicresearchandindustryagendahavebeenreleased(expectedtobeupdatedandfinalizedin2023).InNATO,theestablishmentofaquantumtestingce

257、nter and laboratory at the Niels Bohr Institute in Denmark wasannounced for the development and testing of quantum technology(includingquantumencryption).Quantumtechnologyhasbeenidentifiedasacriticalemergingtechnology,andintegratedtechnologiesforQKDandPQC are being researched to protect information

258、infrastructure for theallianceinthebestandmostcomprehensiveway.AdvancinginanAllianceIn China,many policies supporting the development of quantum are continuously being released by the eastern and central provinces and cities.From an economic and geographic perspective,Chinas quantum policieshave bee

259、n mainly concentrated in the eastern coastal provinces andmunicipalities,with only Tianjin not releasing any quantum-relatedpoliciesin2022.Thelastwaveofquantumpolicyreleasesoccurredin2021,whenlocal14thFive-YearPlanswerereleasedbyprovincesandcitiesnationwide.Provincesandmunicipalitiesincentralandsout

260、hwesternregionswithacertainamountoftechnologicalaccumulationandindustrialfoundationhavealsoreleasedquantumpolicies.Keypolicykeywordsincludedigitaleconomy,futureindustries,commercialcryptographyapplications,networkanddigitalsecurity,advancedmanufacturing,etc.,which are also applicable to the global p

261、olicydevelopmentdirectionofthequantumcommunicationandsecurityindustry.Whilelocalgovernmentpoliciesrelatedtoquantumtechnologyhavebeenfrequently introduced in China,the actual implementation of thesepolicies has been limited.Considering that the quantum informationindustry is still in its early stages

262、 and the industry scale is verylimited,local government investment in quantum technology has beenrelativelylow.ContinuousReleaseThe workforce developing quantum technology is receiving policy attention.Policies from various countries have more or less mentioned theimportance of quantum talent.The Un

263、ited States,in particular,hasreleasedthereportQuantumInformationScienceandTechnologyWorkforceDevelopmentNationalStrategicPlanthroughtheinfluentialpublicationbodyNSTC,showingitsattentiontotheworkforcetothepublic.Quantumpolicieshavegraduallyexpandedtheirfocusfromscienceandtechnologyto the people resea

264、rching and developing them.Current policiesconcerninglaborforcemainlyaimtocultivatereserveforcesforquantumresearch through curriculum settings and other means.However,quantumeducationshouldnotbelimitedtouniversityeducation,especiallyasitcurrently focuses mainly on the doctoral level.It should gradua

265、llyinfiltrate K12 education and consider professional education in thequantumproductmanufacturingprocess,wheresuchtalentisessential.QuantumWorkforceThe quantum policy of the United States takes on the most diverse forms,releasing its leadership and cooperation signals through G7,roundtable meetings,

266、and other means.InadditiontothecooperationsignedbytheG7,theUnitedStateshasalso signed agreements with countries such as Finland,Sweden,India,Denmark,andSouthKoreathroughbilateralandmultilateraldialogues,aswellasthroughpublicstatementsbygovernmentofficials,tosignalitscollaboration with other countrie

267、s in the field of quantum technology,constantlyemphasizingitsimportantpositioninthequantumfield,andpromoting the commercialization of quantum technology in the UnitedStates.VariousFormsIndustry Analysis&Forecast07The products and technical services in the field of quantuminformationandsecuritymainly

268、belongtothenetworksecurityindustry,which is a core and fundamental sub-industry withinthevastindustryofnetworksecurity.Thisindustrycanextenddownstreamtovarioussecurityproductsinmultipleindustries.From the current form of development,the quantum informationandsecurityindustryismainlydrivenbytheindust

269、rialvaluebroughtbyquantumphysicsencryptionproductsandtechnologies(suchasQKD),PQC,QRNG,etc.QKDproductshavebeenavailableformanyyearsandarecurrentlymainlyupgraded and iterated to gradually replace components in existingproducts,makingthemmoresuperiorinperformance,morecost-effective,andsmallerinsize.QKD

270、productsdonotreplacetraditionalproductsinsimilarindustries.In2022,theglobalQKDmarketisexpectedtodecreasecomparedto2021,reaching around$800M.Many projects that were previously supported bygovernmentfundshavebeenaffectedbytheCOVID-19pandemic,andmanyhavebeensuspendedorprogressedslowlyduetothepandemican

271、deconomicslowdown.As the global economy gradually recovers and the pandemicbecomesnormalized,themarketsizeisexpectedtoreach$3.5Bby2025,approximatelyfivetimesthatoftheendof2022.Exhibit 7-1 Global QKDIndustryScale(2019-2025E)(Unit:BillionUSD)QKD20.83.520222025E|Version Feb 2023Comparedto202

272、2,theoverallmarketapplicationproportionissimilarin2025.Thedefenseandmilitarysectorremainsthemainmarket,slightlydecreasingfrom29.75%in2022to26.11%.Thepowergridsectorhasthelargest decrease,dropping from 21.88%in 2022 to 16.41%.The marketshareoftelecommunications,governmentservices,finance,railways,and

273、otherindustrieshasallslightlyincreased.Exhibit 7-2 Global QKD forecast(2022-2025E,by application)|Version Feb 2023Segment Share20222023E2024E2025EDefense&Military29.75%25.65%25.85%26.11%Telecommunications9.38%10.05%10.42%10.53%Government Affairs11.38%10.05%10.22%11.70%Power Grid21.88%22.53%21.36%16.

274、41%Finance16.50%15.94%16.41%17.55%Rail8.63%12.31%12.64%15.41%Others2.50%3.47%3.10%2.28%Lookingattheproportionsofthemainlinksintheindustrychain,asoneofthemostimportantlinksintheupstreamoftheindustrychain,componentshavetendedtostabilizeinsupplyastheindustrydevelops,and their proportion in the entire i

275、ndustry structure is expected toslightlydecreasefrom2022to2025.Theproportionofterminalequipmentintheindustrystructureisexpectedtoslightlyincreasefrom2022to2025.Theproportionofnetworkandplatformconstructionisexpectedtosignificantly decrease from 2022 to 2025,as most infrastructureconstructionworkhasa

276、lreadybeencarriedoutonalargescale.AsQKDinfrastructure gradually improves,its proportion in the industrystructurewillsignificantlyincrease.By2025,alargenumberofnetworkplatformswillhavebeenbuilt,andoperationalactivitieswillenterapeakperiod,withmoredownstreamapplicationslaunchingintooperation.Exhibit 7

277、-3 Global QKD Industrial Structure(2022-2025E)|Version Feb 202325%0%50%75%100%11.38%10.20%41.25%43.50%37.29%19.20%10.08%27.10%Electronic ComponentsTerminal DeviceNetwork and PlatformOperationQRNGThequantumrandomnumbergenerator(QRNG)isacomponent-levelproduct,unlikeQKDequipmentwhichrequiresmultiplecom

278、ponentstobeassembled.Forentrepreneurswhowanttoenterthequantumindustry,QRNGisanareathat can be quickly accessed.Furthermore,QRNG has a wide range ofapplications,notonlyinthefieldofquantuminformation,butalsoincomputingsimulation,financialpayments,andbiologicalimplants,amongothers.As the performance an

279、d economies of scale of QRNG productsimprove,they are expected to gradually replace some existing randomnumberproducts.QRNG is a research and application field recognized and supported bygovernments.Forexample,theUKsAQURANDprojectandtheEUsQRANGEproject,whicharejointindustrialcollaborationsledbynatio

280、nalunitsandprimarilysupportedbynationalfunds.ThegrowthofQRNGapplicationsisrelatedtotheflourishingdevelopmentof the quantum information age.Although classical RNGs can currentlymeet most application needs,they may not be able to provide highersecurityasnewtechnologiesemerge.WhenthecostofusingQRNGdrop

281、stoalevelwhereitcanbereplacedorappliedonalargescale,itwillexperienceexplosivegrowthduringthisperiod.Especiallyinthe5G/6Gera,alargenumberofmobiledevicescanuseQRNGtoincreasesecurity.At present,the main application scenarios are for situations thatrequirehighsecuritybutarenotsensitivetocostandscale,mai

282、nlyforexploratory experiments.With the iteration and upgrading of QRNG,theproductisexpectedtoenterthelivesofindividualconsumersonalargescaleinrecentyears.Forexample,QRNGmayappearonalargescaleinmobile phones,bank U-disks,unmanned driving(drones,unmanned ships,unmannedvehicles),internet-connectedcars,

283、andotherIoTproducts.Thismeans that the development of QRNG products is mainly in the form ofchips,whicharesmallinsize,fastinspeed,morereliable,andmoreeconomical.Currently,the gambling industry is one of the downstream markets forQRNG.Thisisbecausehackerssuccessfullymademillionsofdollarsbylockingandi

284、nvadingslotmachinesin2014,causinglossestocasinosintheUnitedStates,Romania,andMacau.CasinosintheUnitedStatesandMacauhaveusedQRNGtoprovideafairenvironmentforparticipantsingames.Exhibit 7-4 Global QRNG Industry Scale(2022-2030E)(Unit:Billion USD)0.050.2020222025E22.502030E|Version Feb 2023It is estimat

285、ed that the QRNG industry will reach a market size ofapproximately$51M in 2022.This market is expected to experience arobustgrowthtrajectory,withtheindustryprojectedtoexpandto$203Mby2025,andexceedinganimpressive$22.5Binmarketsizeby2030.Thisrepresents a significant opportunity for businesses operatin

286、g in thisspace,as the demand for quantum technology continues to surge andinvestmentsinthisindustrygrow.ThedrivingforcebehindthegrowthoftheQRNGindustrycomesfromthematurityofchiptechnologyandthewidespreadrecognitionoftheproductbydownstreamapplications.The form of PQC products can be classified as sof

287、tware or hardware.Softwareproducts(includingalgorithms)maybeappliedtoapplicationssuchaswebbrowsers,whilehardwareproductsmaygraduallybeinstalledinIoTdevicesintheformofchipsorembeddedchipmodules.AsPQCisanupgradeoradditionofalineofdefensetocurrentalgorithms,itmayreplacesometraditionalsecuritysoftwareor

288、chips.ThegrowthofthePQCmarketiscloselyrelatedtothestandardizationprocessofPQCandthepracticalityofquantumcomputers.ItisexpectedthatthePQCindustrywillstillbeintheinitialstagein2022,withamarket size of about 10 million US dollars,but will see significantgrowthby2025,reachingabout$1.77B,andreaching$42.4

289、2Bby2030.Exhibit 7-5 Global PQC Industry Scale(2022-2030E)(Unit:Billion USD)PQC|Version Feb 20230.011.7742.4220222025E2030E08Perspective View Intheeraofquantumtechnology,networkinformationsecuritywilluseQKD and PQC cryptography techniques.Both aim to address the securitychallenges posed by the quant

290、um era,but differ in their protectionmechanisms.QKD is based on physical hardware while PQC relies onalgorithm software.While QKD is already widely deployed in manycountries,PQCisstillinthestandardizationstage.Asbothservenewquantum-erainformationsecuritytechnology,theyareconstantlycompared.QKD and P

291、QC may not necessarily replace each other,as theyeachhavetheirownadvantagesanddisadvantages.QKDmayhavehardwarevulnerabilitiesandincreasedeploymentcosts,whilePQCmaybecrackedat some point.In the future,different security level requirements,applicationscenarios,andotherfactorsmaydeterminethechoicebetwe

292、enQKDorPQC,oracombinationofboth.TheBattlefortheBestSolutionContinuesBetweenQKDandPQC.01In practical applications,the communication range of ground-based QKDlinksiscurrentlylimitedtoaround800kilometers,whichisthemaximumdistanceforground-basedfiberopticQKDcommunication.Thislimitationmeans that QKD is

293、still primarily confined to urban areas or regionalranges,and is far from meeting actual usage needs.To enable long-distance quantum communication,the development of quantum relays andsatellitenetworksisnecessary.Thistrendhasbeenconfirmedbyactualactionsin2022.Forexample,theQ-NEXTquantumresearchorgan

294、ization,ledbyAmazonandtheUSArgonneNationalLaboratory,iscollaboratingtodevelop quantum relays.Additionally,the US and South Korea haveestablished a quantum relay cooperation center jointly operated by theKoreaAdvancedInstituteofScienceandTechnologyandHarvardUniversity.Currently,companies such as Qunn

295、ect in the United States,supportedbytheDepartmentofDefense,arededicatedtothedevelopmentofquantumrelays.Thedevelopmentprocessofquantumrelayswillreflecttheprogressofpracticalquantumnetworks.Furthermore,the opening of Chinas QKD metropolitan area network hasopenedupanewpathtowardspractical-scalequantum

296、securecommunicationnetworks.InadditiontoChina,SouthKorea,EUcountries,andtheUSarealsocontinuingtoadvancetheirownQKDnetworkconstruction.AlthoughtheUSNationalSecurityAgencyhasexpressedconcernsaboutunverifiedissues in QKD,actual actions show that US national laboratories andother countries researching q

297、uantum technologies have not stoppedresearchingQKDtechnologyandverifyingtheusabilityofQKDnetworks.Although QKD currently has attractive performance parameters,there isstill room for improvement.To meet the broader practical goals ofquantum communication,new solutions will continue to emerge.Asexperi

298、ments continue,existing QKD application technologies will beiterativelyupgradedandnewproductsreleasedinparallel.ThedevelopmentgoalofQKDremainstoexpandcommunicationdistancestoapracticalscale.02Quantum Random Number Generator(QRNG)is a relatively mature productthat is known to the general public throu

299、gh Quantum Key Distribution(QKD).UnlikeQKD,whichisacomprehensiveapplicationwithacertainsystemscale,QRNGisaquickentryfieldforsomeentrepreneurswhowanttoenterthequantumfield.Meanwhile,QRNGiswidelyusedandhasitsvalue not only in the fields of quantum communication and quantumcomputing,butalsoinfieldssuch

300、ascomputationalsimulation,financialpayment,and biological implants.The UK and the EU have establishedprojectsforQRNG,suchasAQURANDintheUKandQRANGEintheEU.TheseprojectsaimtoacceleratethecommercialandindustrialdevelopmentofQRNG,and are supported primarily by national funding with thecollaborationofind

301、ustrialpartnersandledbynationalunits.Thesmartphonemarketandthesmartdrivingcarmarketaretheclosestand most popular QRNG downstream applications to the general public.Samsung has been releasing quantum 5G smartphones with QRNG chips forthree consecutive years,and although the size of the chips has notc

302、hangedinthreeyears,thenumberofprotectedsmartphoneapplicationshas increased.LG and 360 have begun to test and research QRNGapplicationsforsmartdriving.Ontheothersidethatthegeneralpublicmaynotsee,datacenterandcloudapplicationsmaybealargermarketastheunderlyingdatatransmissionisderivedfromit.Inthefuture

303、,QRNGproductsintheformofsmalldevicesandchipswillcontinuetoservedata center/cloud applications and mobile applications respectively.Mobile applications include smartphones,networked cars,etc.andeconomically priced QRNG chips will gradually be applied to theseproducts.ThedevelopmentofQRNGisproceedingi

304、ndependentlywithongoingtechnicaliterationandexpansionofitsapplicationscenarios.03AccordingtoanannouncementfromNIST,adraftofPQCstandardizationcouldbereleasedin2023,withthegoalofpublishingasetofstandardsby2024.TheUShasnotifiedfederalagenciestobeginmigratingtoPQCbeforerunningquantumcomputers.Thisaction

305、isexpectedtobefollowedby many countries worldwide,and the transition to PQC standards isexpectedtooccurbetween2024and2030,aspracticalquantumcomputersareanticipatedby2030.Thetransitiontopost-quantumencryptionalgorithmsdependsonboththedevelopmentandadoptionofsuchalgorithms.TheNISTprocessofcreatingnewp

306、ost-quantumcryptographystandardsiscurrentlyunderway.Chinahasnot yet publicly disclosed any institutions that are working on post-quantum encryption algorithms,but based on Chinas past efforts incryptography and related projects,it may begin in the two yearsfollowingNISTsrelease.The recent years PQC

307、standardization conferences hosted by NIST haveinvolved the participation of many countries,including the US,China,Japan,the Netherlands,Switzerland,Germany,the UK,France,Italy,Canada,SouthKorea,Russia,Brazil,Australia,Spain,Norway,Belgium,Finland,Denmark,Singapore,Israel.Thisindicatesthatthesecount

308、riesareamongthefirstparticipantsandarealsothetop15economiesintheworld,demonstratingthatPQChasgainedrecognitionamongmajorglobaleconomies.ThedevelopmentofPQCalgorithmsisunderway,butitsapplicationplanningisstillinitsearlystages04Whatpreparationsshouldparticipantsintheindustrychainmakebeforethe PQC stan

309、dardization work is finished?As an algorithm applicationresearchteam,youcanchooseacurrentlyhighlydemandedcandidatekeynegotiation algorithm from the standardization projects in which youparticipate,butastechnologyevolves,thisalgorithmmaybeattackedinthenextfewyears.However,ifthePQCalgorithmisintroduce

310、dafterthestandardization project is completed,security issues still persist.Currently,amixofclassicalandquantum-resistantsolutionscanbeusedto reduce potential risks.This is because,if quantum computerseventually become a reality,they cannot directly break throughinformation encrypted with post-quant

311、um keys.If security issues arediscovered in quantum-resistant algorithms during the transition fromclassicaltoquantum-resistantencryption,solutionscanbeproposedassoonaspossible.Adoptingaclassicalandhybridapproachbeforestandardizationiscompletemayreducerisk.05In2022,therewasfrequentglobalcooperationi

312、nthefieldofquantumcommunication and quantum information science.These collaborationsmainly aim to complement each others weaknesses with each othersstrengthsortodraweachotherintobuildingglobal,regional,oralliedindustrialchainsinordertocombatuncertaintiescausedbychangesininternational relations.There

313、 are various forms of collaboration,including:Establishingresearchcentersinfieldssuchasscienceandtechnology.For example,the National Research Foundation of South Korea(NRF)invested in the Pritzker Molecular Engineering at the University ofChicago in the United States to jointly lead the creation of

314、a SouthKorea-United States joint research center dedicated to quantum errorcorrection.Currently,therearefivequantumfieldcollaborationswithintheKorea-UnitedStatesScienceCooperationCenter(KUSCO),includingtheEntangled-BasedQuantumNetworkCenterco-foundedbytheKoreanStandardsScientificResearchInstitute(KR

315、ISS)andtheUniversityofIllinoisatUrbana-Champaign and the Quantum Relay Center co-founded by the KoreanInstituteofScienceandTechnologyandHarvardUniversity.Aplatformforconnectingquantumresearchershasbeenestablished.Forexample,aroundtableconferencewasheldinLondonbytwelvecountries,including Australia,Ca

316、nada,Denmark,Finland,France,Germany,Japan,theNetherlands,Sweden,Switzerland,theUK,andtheUS,toadvancethemultilateral dialogue on quantum.The conference,called EntanglementExchange,wasinitiatedbythecooperationofthetwelvecountriesandfollowedthepreviousroundtableconference,PursuingQuantumInformationToge

317、ther,heldinWashingtoninMay.Agreementsonquantumtechnologyhavebeensignedbetweencountries.Forinstance,theUSandFrancesignedaquantumtechnologyagreement,whichclearlyidentifiesquantuminformationscienceasarecognizedfieldforcontinuedresearchcooperation.Byvariousformsofcooperation,bothpartiescancomplementeach

318、othersstrengths and technology,which can accelerate the advancement of thisnewtechnology.Globalcooperationcanaidincomplementingeachothersstrengthsandacceleratethetimelinefortechnologytoreachpracticalapplication.06Fromamacroeconomicperspective,2022wasthethirdyearinwhichtheglobal pandemic swept the wo

319、rld.Major economies gradually relaxedpandemic restrictions,which injected timely momentum into the entireeconomiccycle.On a meso-level,the QIS budget in the United States declined for thefirsttimesince2019,whilenewsofadecreaseingovernmentinvestmentinpre-determinedquantumprojectsinRussiaalsoemerged.T

320、hisoutcomemay be related to increased expenses from the 2022 Russia-Ukraineconflict and the economic downturn caused by the COVID-19 pandemic.However,morecountriesstillsupportquantumcommunicationandsecurity.At the micro level of businesses,the 2022 Nobel Prize in Physics wasawardedinthefieldofquantu

321、minformation,whichisagreatrecognitionof quantum information science.In this wave of information,a largenumber of people began to know and pay attention to quantum,and thenchosequantuminformationscienceintheirfutureeducationandcareers,which has a positive impact on future talent reserves.However,this

322、positive impact is not enough for investment institutions,which arerational.Startupsperformancesareinevitablydiscountedtosomeextentduringthepandemicinthepastthreeyears,andtheoriginalfinancingplans may be delayed,with a slow growth in the number of investmenttargets.Investmentsinthefieldsofquantumcom

323、municationandsecuritywillgraduallyrecoverandnewtargetswillemerge.07In addition to the alliance of scientific and technological research,manygovernmentsconsiderquantumtechnologytobeakeyindustrydrivingfuture economic growth in their countries.As a result,industryalliancesandassociationsthatareguidedby

324、thedevelopmentofindustryaregraduallybeingestablished.Amongthese,theUSQED-CCoreAllianceis particularly interesting,as its membership continues to expand anditswebsiteandotherinformationarebecomingincreasinglyrefined.Thealliancesplanningisgraduallybecomingevident.Othercountrieshavealsoestablishedindus

325、tryalliancesorassociationsin2022,suchastheQuantum Information Network Industry Alliance(QIIA)established inBeijing in July,sponsored by the China Academy of Information andCommunications Technology and guided by the Ministry of Industry andInformation Technology;the Quantum Science and Technology In

326、novationAlliance established in Hefei in September;the UKQuantum Allianceestablished in the United Kingdom in October;the Australian QuantumSoftwareNetwork(AQSN)AllianceestablishedinSydneybytheAustralianFederalScientificandIndustrialResearchOrganizationinNovember;andthe Anhui Commercial Cryptography

327、 Industry Association established inHefeiinDecember.Among these,the alliance in Australia,the AQSN,has integrated non-local organizations such as Google Quantum Artificial Intelligence,Okinawa Institute of Science and Technology in Japan(OIST),and theUniversity of Oulu in Finland,in order to promote

328、 cooperation andpartnershipsinquantumhardwareandsoftware.Intermsofinternationalcooperation in cutting-edge technology,China is clearly unable tocomparewiththealliancesoftheUnitedStatesandAustralia.Themaintechnologicalnationsareallnurturingtheirindustrialecosystemsbyfocusingonquantumtechnology.08Desp

329、ite the impact of COVID-19,which has limited travel and offlinemeetings,industry conferences related to quantum communication havestill taken place in countries such as the United States,China,andSpain,promoting communication between enterprises,governments,andacademicorganizationswithintheindustry.

330、Forexample,theInternational Conference on Quantum Communication,Measurement andComputing(QCMC 2022)was held in Lisbon,Portugal in July,the 17thConference on the Theory of Quantum Computation,Communication,andCryptography(TQC2022)washeldattheUniversityofIllinoisChampaignin the United States,the 2nd Q

331、uantum Industry Conference was held inHefei,China in September 2022,and the 4th Guangdong Hong Kong MacauGreater Bay Area(Guangdong)Quantum Cryptography and InformationSecurity Summit(CFQCIS)was held in Guangzhou in December.However,these exchanges are still influenced by regional,international,andl

332、anguagefactors,suchasthelimitedattendanceofguestsfromoutsideChinaintheconferencesheldinChina.Industry conferences are relatively effective ways of communicatingwithinaregionalorindustrialalliance,whichcanhelptoshortentheprocessofindustrydevelopment.Quantumtechnologyisstillinastagewhere only a small

333、portion is practical and a large amount is in theexperimental verification and engineering trial phase.While quantumtechnology has the potential to create new markets,it remains achallengeforcompaniesalreadyinthefieldofquantumcommunicationandsecurity,especially for start-ups.This is because many applicationscenariosareinnovativeandnotyetaccepted,somearesubstitutesfortraditionalones,buthighR&Dcosts