Minsheng Securities: Quantum computing may become a disruptive force and bottleneck for and is expected to accelerate the application of the AI industry.

Minsheng Securities released a research report stating that quantum computing is expected to overturn classical computing architecture and become a disruptive force in solving the AI computing bottleneck, or become an important lever for developing new quality productivity. Sorting out the industry chain related targets, including Quantumctek Co., Ltd. (688027.SH) - quantum computer, Guangzhou Hexin Instrument (688622.SH) - dilution refrigerator and other quantum computing related targets, as well as CETC Cyberspace Security Technology (002268.SZ), Jilin University Zhengyuan Information Technologies (003029.SZ), Koal Software (603232.SH), C*Core Technology (688262. SH), Zhejiang Orient Financial Holdings Group (600120.SH), Hengtong Optic-Electric (600487.SH) and other quantum encryption communication targets. The main points of Minsheng Securities are as follows: Microsoft released its first quantum computing chip. According to Tencent Technology reports, on February 20, after nearly 20 years of research, Microsoft launched its first quantum computing chip Majorana1 in the United States on Wednesday. Microsoft stated that developing Majorana1 required the creation of a new form of material state, known as "topological body". Majorana1 is as small as 0.01 millimeters wide and has achieved the placement of 8 topological qubits on a single chip. In the future, this chip will be able to expand to millions of qubits. This chip could perform tasks that all the current computers in the world working together cannot achieve with a 100,000 qubit quantum computer. Using a new architecture to produce more reliable computing units. The core of a quantum computer is quantum bits (qubits), which are the information units in quantum computing, similar to the binary system used by computers. However, qubits are fragile and very sensitive to environmental noise, which can lead to computing errors or data loss - a destructive outcome for computers. This is the core contradiction that has slowed down the development of quantum computing. In order to solve this problem, Microsoft's quantum chip has adopted a new solution by creating the so-called "world's first topological body" to observe and control Majorana particles, thereby generating more reliable and scalable qubits. Microsoft solves architecture issues through materials. Microsoft stated that this topological body uses indium arsenide (a semiconductor) and aluminum (a superconductor) to design and build the topological conductor wires atom by atom - the "quantum transistor of the quantum era". Microsoft stated in a blog post, "Developing suitable materials for creating exotic particles and their related topological states is extremely difficult, which is why most quantum research focuses on other types of qubits." Quantum chips are expected to accelerate the application of the AI industry. Microsoft CEO Nadella predicts that when AI is combined with quantum computing, quantum computing can be used to generate synthetic data; then, AI can use this data to train better models for application in complex fields such as chemistry and physics. The company believes that when the power of quantum computing is combined with AI, people can create new materials or molecules through language, get answers directly without speculation or experimentation. Risk Warning: Policy implementation falls short of expectations, capital expenditures fall short of expectations, and intensified competitive landscape.