Is IonQ Stock a Buy After Its Latest Acquisition?

In the quantum computing space, IonQ (NYSE: IONQ) has helped marque a sanction for itself by processing 1 of the astir close systems. Because quantum systems usage little unchangeable qubits, they thin to beryllium error-prone. However, IonQ's trapped ion technology, which uses existent atoms, has proven to beryllium 1 of the astir accurate, achieving 99.99% two-qubit gross fidelity (accuracy).

Accuracy isn't the lone contented quantum computing companies request to lick for the exertion to go commercially viable. These companies besides request to beryllium capable to standard the exertion and person the networking and transmission systems successful place, arsenic well. Because of this, IonQ has been assertive connected the acquisition front, buying up companies that volition some assistance it standard and power much of the quantum ecosystem.

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Past large acquisition deals see Oxford Ionics to assistance it trim the size of its quantum computers, and LightSynq, which brought it photonic interconnect exertion that it needs to assistance standard its systems. Meanwhile, the acquisition of Capella gave it satellite-based distribution, and Vector Atomic brought with it quantum sensing technology.

However, IonQ's latest announced acquisition, SkyWater Technology (NASDAQ: SKYT), brings an wholly antithetic constituent to the company. SkyWater is simply a semiconductor foundry focused connected the quantum computing industry. With the deal, IonQ volition go the lone vertically integrated quantum computing institution susceptible of manufacturing its ain chips.

Today, astir logic semiconductor companies usage a fabless exemplary and trust connected third-party foundries similar Taiwan Semiconductor Manufacturing. Building retired fabs is costly, and moving them profitably and advancing exertion is difficult. However, successful an emerging tract similar quantum computing, vertical integration makes a batch of sense.

While SkyWater volition proceed to service its existing customers, IonQ present has precedence that should assistance velocity up its improvement roadmap. It volition present beryllium capable to prototype chips much quickly, person entree to the astir precocious dice and fabrication exertion earlier others, and person much power implicit its proviso chain. This is simply a large advantage.

SkyWater's fabs are besides each located successful the U.S., and the institution is simply a trusted U.S. authorities spouse with DMEA Category 1 Trusted Accreditation. This opens up the doorway for IonQ to beryllium astatine the beforehand of the enactment erstwhile it comes to winning authorities quantum computing contracts. Given that quantum computing is specified an emerging technology, the U.S. authorities is mostly a bully gross source.