Half of the Administration’s $2 billion investment is going to tech giant IBM to build an American quantum chip foundry. To helm the research and development efforts, IBM said it will form a new subsidiary called Anderon that will be headquartered in Albany, New York.

IBM is breaking into the quantum computing foundry business.

The report said IBM will receive the largest share of the package, with nearly $1 billion in grants expected to go to the tech giant.

IBM Stock: The Trump administration is awarding $2 billion in ​grants to nine ​quantum-computing companies in deals.

IBM will receive half the award, while companies such as D-Wave and Rigetti will also get a piece. In return, the government will take equity stakes.

International Business Machines Corp (NYSE:IBM) shares are on track to close the week nearly 18% higher after the US Department of Commerce's $2 billion quantum computing investment package, which Wedbush analysts called a significant new catalyst for the industry.

This article is part of a package on the future of quantum computing. Read about the most promising applications of these machines here and see an illustrated field guide to qubits here. Inside a low-slung building in an office park near the southeastern edge of the San Francisco Bay,