April 28 (Reuters) - IBM ( IBM ) will invest $150
billion in the U.S., including on facilities for quantum
computer production, over the next five years, the latest
American technology company to back the Trump administration's
push for local manufacturing.
The company's announcement on Monday follows similar pledges
by tech giants such as Nvidia ( NVDA ) and Apple ( AAPL ), both
of which have said they would spend about $500 billion each in
the country over the next four years.
Several analysts see the spending commitments as overtures
to U.S. President Donald Trump, whose tariffs threaten to roil
supply chains and raise costs for the technology industry.
IBM ( IBM ), also a significant government contractor, said more
than $30 billion of the total investment would be used to expand
its U.S. manufacturing of quantum computers and mainframes -
systems used for handling vast data and critical applications.
The company operates one of the world's largest fleet of
quantum computing systems, which promise to offer performance
thousands of times more powerful than traditional computers.
"While we believe IBM ( IBM ) will continue to invest in the
emerging area of quantum technology, the bombastic figure is
more likely a gesture towards the U.S. administration," said
D.A. Davidson analyst Gil Luria, noting that Big Tech was using
the investment pledges as a shield against trade conflicts.
Recent breakthroughs in quantum computing, including a new
generation of chips announced by Alphabet's Google in
December, have driven up interest in the sector, though
executives remain divided on when the technology will have
real-world applications.
Google aims to release commercial applications in five
years, while Nvidia's ( NVDA ) CEO Jensen Huang predicts a 20-year wait
for practical uses.
IBM ( IBM ) said last week 15 of its government contracts were
shelved under a cost-cutting drive by the Trump administration,
a setback that eclipsed its upbeat June-quarter revenue forecast
and sent its shares lower.
The company had cash and cash equivalents of $14.8 billion
as of December 31. It spent $1.13 billion on capital expenditure
last year, while total expenses were $29.75 billion.