Quantum Leap: Telefónica Tech, IBM team on quantum computer security solutions

Welcome to the latest edition of “Quantum Leap” where The Fly decodes news and activity in the quantum computing space. 

STARTUP COSTS: Sealsq (LAES) announced that it has allocated up to $20M of its available cash to invest in startups specializing in quantum computing, quantum-as-a-service, and AI-driven semiconductor technologies. This strategic initiative is a component of the Sealsq Quantum Roadmap. This investment will support multiple startups at the forefront of developing quantum computers and computing architectures, quantum networking solutions, and cloud-based quantum services hardened by Sealsq’s advanced security protocols.

QUANTUM-RESISTANT TECH: Sealsq reported confirmed 2025 bookings at $6.4M. The company said, “Demand for our quantum-resistant technologies continues to rise ahead of their commercial rollout in 2026. Confirmed 2025 bookings currently stand at $6.4M, marking an 80% increase compared to the same period in 2024. SEALSQ’s pipeline includes $93M in potential contracts over the next three years, reflecting a 27% growth versus 2024. This includes 40 active and engaged opportunities for the new Post-Quantum TPM products, with a goal of reaching 100 TPM leads by end of 2025, while securing at least 30 new PKI customers. While revenue is not expected to fully return to 2023 levels within the year, SEALSQ remains on track for sustained long-term growth, driven by continued product innovation, expanded customer relationships, and increasing market demand. Strategic Priorities for 2025: SEALSQ remains committed to advancing excellence in quantum-resilient technologies with a focus on: Scaling production capacity for two new quantum-resistant chips launching in 2025. Developing a new business line of post-quantum ASICs and IPs, building on advanced commercial discussions with major tech companies initiated in 2024. Expanding partnerships with governments and enterprises to fortify digital ecosystems. Continuing research and development in advanced cryptographic algorithms. Expanding its SSL/TLS and GSMA certificate offerings to further strengthen its cybersecurity ecosystem.”

QUANTUM REALIZED: D-Wave Quantum (QBTS) launched a new integrated brand campaign, “Quantum Realized,” to showcase the benefits of quantum computing. The new campaign launched with an open letter from D-Wave CEO Alan Baratz published in The Wall Street Journal about the status of quantum computing’s commercial viability. Baratz’s letter presents the “Quantum Realized” framework, which includes three benchmarks to evaluate a quantum company’s value: “The company provides quantum technology that is better or faster at solving computationally complex problems than a classical computer alone. Its quantum systems are highly performant, highly reliable, and highly available. It has proven commercial customer successes in proof-of-concepts and in-production application deployment.”

POST-QUANTUM CRYPTOGRAPHY: Sealsq announced that, in collaboration with the Oiste.org Foundation, it is developing the next generation of post-quantum cryptography root of trust, an advanced cryptographic solution designed to secure digital identities, systems, and communications against the imminent threat posed by quantum computing. The launch of the Quantum RootCA is expected as early as Q1 2025. The Quantum RootCA employs post-quantum cryptography algorithms to protect against the vulnerabilities of traditional encryption methods like RSA and ECC, which can be broken by quantum computers. By leveraging algorithms such as Crystals-Dilithium and Falcon, the Quantum Root Key ensures that encryption remains secure even as quantum computing evolves.

FUTURE OF DATA SECURITY: Telefónica Tech, the digital business unit of the Spanish telecommunications group Telefónica, and IBM (IBM) announced a collaboration agreement to develop and deliver security solutions that address security challenges posed by future cryptographically relevant quantum computers. The companies said that the advent of quantum computing will allow for more advanced calculations, but it also brings with it a critical challenge: ensuring data security in a future where traditional encryption algorithms could become vulnerable. Additionally, while a cryptographically relevant quantum computer is not yet available, data may already be vulnerable to harvesting by cybercriminals for future decryption. Raquel Ruiz Lozano, Global Head of Strategic Partnerships for Telefónica Tech, stated: “Quantum computing offers incredible opportunities, but it could also pose a significant challenge in terms of cybersecurity. This collaboration agreement with IBM allows us to continue to help address the potential risks of the post-quantum world, thanks to its IBM’s quantum safe technology, and to offer our clients solutions to help protect their critical data and face this transformation with security and confidence.” Adolfo Hernández Pulido, Technology Managing Director for Telefónica at IBM, highlights: “It is critical for organizations to begin evaluating their cryptography and planning a transition to quantum-safe standards. At IBM, we are proud not only to have had a hand in the development of new post-quantum cryptography algorithms, but also to be leading the way with new quantum-safe technologies and services. We are thrilled to sign this collaboration agreement with Telefónica Tech focused on quantum safe technology.” 

AUTOMATIC DATA LEVELING: Quantum (QMCO) announced scalability enhancements to its Quantum Myriad all-flash file system, making it the first solution to offer incremental, in-place system scaling with dynamic, automatic data leveling. The company said, “These advancements deliver unmatched flexibility and adaptability in a modern, all-flash file system so customers can meet their evolving storage requirements in the era of AI. The new scalability features enable customers to start with as few as five partially populated NVMe Storage Server nodes, then expand in increments of one or more nodes at a time with the additional storage available in minutes, with no need for admin intervention, and no impact or interruption to user operation. Customers will be able to continue adding nodes as their needs grow, increasing capacity while maintaining linear performance with automatic data leveling across all nodes as new Storage Server nodes are added.”

OSAT FACILITY: Sealsq reaffirmed its commitment in strengthening its footprint in the U.S. via the planned establishment of a semiconductor manufacturing facility, through the expansion of Sealsq USA. This initiative is expected to be a step in reinforcing the U.S. semiconductor supply chain by enabling the domestic production of post-quantum microchips. Sealsq USA’s expansion includes the planned establishment of a dedicated Outsourced Semiconductor Assembly and Test center, a move aiming to enhance the country’s semiconductor self-sufficiency. This OSAT facility is intended to deliver comprehensive semiconductor packaging, testing, and final assembly services. Sealsq intends to strategically position its U.S. operations in Arizona and New York, two key regions driving semiconductor innovation. Sealsq has already incorporated Sealsq USA in the state of Arizona with the intent of using this entity to house its OSAT and manufacturing operations. Sealsq’s U.S. expansion aligns with overall efforts to onshore semiconductor production and reduce reliance on foreign supply chains.

PATENTED: Sealsq announced that it has expanded its patent pool, a milestone in its commitment to post-quantum cryptography. Sealsq has developed and patented technologies designed to counteract the vulnerabilities posed by quantum adversaries. Sealsq is collaborating with NCCoE in the migration to post-quantum cryptography building block consortium which aims to bring awareness to the issues involved in migrating to post-quantum algorithms and to develop practices to ease migration from current public-key algorithms to replacement algorithms. The patents cover innovations in semiconductor security, cryptographic key management, and anti-tampering mechanisms. Sealsq’s patents represent a foundation for the future of secure semiconductors, cryptographic processing, and post-quantum security solutions.

ANALYST COMMENTARY: Maxim increased the firm’s price target on WISeKey (WKEY) to $10 from $4.50 and keeps a Buy rating on the shares. The firm is citing the positive Q4 revenue pre-announcement by WISeKey semiconductor subsidiary Sealsq, the analyst told investors in a research note. The firm is also boosting its model as its peer group average is now around 9.2x after quantum-related names rallied starting in December 2024, Maxim added.