Event: Recently, Google released a new generation of quantum computing chip "Willow", which has achieved a major breakthrough in the field of quantum computing in terms of error correction and performance.

The birth of "Willow" laid a solid foundation for the practical application and large-scale development of quantum computing: although quantum computing has been valued for its revolutionary computational potential, the problem of high error rates in its development has been a major obstacle to technological progress. Qubits are prone to errors because they are extremely sensitive to environmental interference, and often an increase in the number of qubits leads to an increase in the error rate. However, through its unique design, the Willow chip arranges 105 qubits in a square grid, which achieves an exponential decrease in the error rate while increasing the number of qubits, and finally realizes a "below threshold" system, successfully overcoming quantum error correction, a problem that has long plagued the field of quantum computing, and greatly improving the reliability of quantum computers. In terms of performance testing, in the Random Circuit Sampling (RCS) benchmark, Willow completed a computation in less than 5 minutes that would have taken Frontier, the fastest supercomputer to complete, "10 to the 25th power" years, exponentially faster than traditional supercomputers, highlighting the huge advantages of quantum computing over classical computing. Recently, under the guidance of the National Laboratory, China Telecom Quantum Group, jointly holding Guodun Quantum, based on the "Xiaohong" chip, has developed the superconducting quantum computer with the largest number of bits in China - Tianyan-504, which indicates that China has the leading quantum computer manufacturing and delivery capabilities. The quantum computing chip "Xiaohong" carried by the "Tianyan-504" quantum computer has 504 bits, setting a new record for the number of superconducting qubits in China. With the 504-bit real computer connected to the quantum computing cloud platform and provided external services, the "Tianyan" cloud platform has realized the dual upgrade of computing power scale and computing power type. It is the largest quantum computing cluster in China, which consists of one 24-bit, two 176-bit and one 504-bit quantum computer, and provides five types of world-class high-performance simulation machines and Cqlib quantum programming framework, which is another leap in China's quantum computing capabilities. Since the "Tianyan" quantum computing cloud platform has been served, it has been visited by more than 12 million people from more than 50 countries around the world, and the number of experimental tasks has exceeded 600,000. In terms of downstream application prospects, quantum computing is of great significance in accelerating artificial intelligence training, research and development of new drugs and materials, nuclear fusion research and new energy development, and is expected to accelerate the penetration and application of quantum computing into downstream demand markets in the future.

Investment suggestion: The technological breakthrough of Willow chip has injected new impetus into the entire quantum computing industry, which will inspire more enterprises to increase investment in the research and development of quantum computing, accelerate the industrialization process of quantum computing technology, promote the formation and improvement of the quantum computing industry chain, and is expected to give birth to a series of new industries and business models. It is recommended to focus on the leading enterprises of quantum computing and quantum communication, and at the same time pay attention to the whole industry chain of quantum technology, including chip manufacturing, quantum system integration, quantum software research and development, quantum application development and other links.

It is recommended to pay attention to: China Telecom Holdings, Guodun Quantum (688027) related to quantum communication, Zhongtian Technology (600522) related to optical transmission, Accelink Technology (002281) related to quantum chips, etc.

Risk warning: the risk of uncertainty of domestic and foreign policy and technical frictions; the risk of increased competition in the global quantum information industry; the risk of uncertainty in the development of technology; The risk that the market development is not as expected.