Kirkland Advises IBM on Agreement with U.S. Department of Commerce to Establish First Quantum Chip Foundry

Kirkland & Ellis advised IBM (NYSE: IBM) on a letter of intent with the U.S. Department of Commerce (DoC) to build an American quantum chip foundry, securing the nation's global quantum leadership and fueling the country's growing quantum ecosystem. The CHIPS incentive from the DoC will support the research and development efforts of a new IBM company named Anderon, which will be America's first pure-play quantum foundry. This initiative represents one of the most significant commitments by the U.S. Government to date in quantum R&D to position the United States to manufacture most of the world's quantum wafers.

In addition to the $1 billion in CHIPS incentives provided by the DoC, IBM will contribute $1 billion of cash into Anderon, along with IBM investing significant intellectual property, assets, and a skilled workforce, with additional investors expected as Anderon grows. Headquartered in Albany, New York as a standalone company, Anderon will operate as a state-of-the-art 300-millimeter quantum wafer foundry. It will help the nation solidify its leadership at the center of a thriving new quantum industry that is estimated to generate up to $850 billion in economic value by 2040 and spur American economic growth while also bolstering national security.

Read the transaction press release

The Kirkland team included corporate lawyers Marshall Shaffer, Claire Campbell and Alex Robertson; and technology & IP transactions lawyer Matt Lovell.