The work of Australian quantum scientists from the University of Sydney has helped Microsoft create a “breakthrough” new chip it claims “marks a transformative leap toward practical quantum computing”.

The chip, unveiled by the tech giant on Thursday under the name 'Majorana 1', was built on a phase of matter which many experts previously did not think was possible, and could mean powerful quantum computers will be available “in years, not decades”, according to Microsoft.

Compared with traditional computers which use binary 1s and 0s, quantum computers attempt to harness the higher processing possibilities of quantum bits, or qubits, which rely on subatomic particles or super-cooled materials which can exist in multiple states at once.

While several large technology companies have claimed quantum breakthroughs in recent years — including the likes of Google and IBM — researchers are still attempting to control and scale-up qubits.

A scientific paper published in Nature alongside Microsoft’s Majorana 1 announcement showed researchers for the company had harnessed a state of matter known as a “topological superconductivity” to create the world’s first “topoconductor” for the creation and control of qubits.

After almost two decades of research, Microsoft said it had managed to place eight topological qubits on its Majorana 1 chip, which was designed to house up to one million of them.

Among the authors of the paper were a group of University of Sydney researchers led by Professor David Reilly, whom had held positions with Microsoft until the company ended its partnership with the university in mid-2024.

The Australian researchers’ ‘secret sauce’

"A huge amount” of the University of Sydney researchers’ work contributed to the creation of Microsoft’s Majorana 1, Professor Reilly told Information Age on Thursday, "from the design, the manufacture of these circuit boards and interconnects, to the read-out technology".

The team’s “major contribution” to the project also included aspects of the device’s cooling and thermal management, Reilly said.

He described the ability to get electronic systems to function at extremely low temperatures and at very low power as the Australian scientists’ “secret sauce”.

“If you don’t have the control technology that’s actually operating in a cryogenic domain, integrated with your qubits, it’s very challenging to do that from room temperature,” he said.

“… We’ve been delighted to see our efforts have an impact on Microsoft’s abilities and its future.”

The other scientists who carried out research at the University of Sydney and were named in Microsoft's paper included Cassandra Chua, Sebastian Pauka, Kevin Simoes, Juan Pablo Dehollain, John Hornibrook, Thomas Ohki, Arnaud Bousquet, Deshan Govender, and Rachpon Kalra.

A spokesperson for Microsoft said while much of the work behind Majorana 1 was completed in the US and Denmark, "Our colleagues at the University of Sydney made strong contributions to some of the core intellectual property behind this breakthrough."

David Reilly to launch new R&D company

In 2021, Professor Reilly led the team of scientists at the University of Sydney’s Microsoft Quantum Laboratories which unveiled a chip designed to control large numbers of qubits.

A few years later, as Microsoft prepared to pull its quantum research out of Australia, the company allegedly offered to move all of Reilly’s team to the United States.

“But we thought there was actually a very significant opportunity for us as a team, if we stay together,” he told Information Age.

Experimental physicist David Reilly says he is preparing to launch a new Australian-based R&D company with experitse in quantum and other fields. Photo: Supplied

Reilly said he and his team of around 20 people were now preparing to launch their own Australian-based research and development (R&D) company.

The firm would do similar work to what the researchers did for Microsoft “but now for everybody else — companies, governments, academic collaborations”, he said.

The company, whose name is yet to be announced, would also carry out research beyond quantum computing in realms such as communications and data management, Reilly added.

The team’s decision to remain in Australia reflected its goal of developing critical technologies domestically, Reilly said, instead of sending potential breakthroughs offshore — a recurring trend in Australian research which was recently noted by the government’s ongoing review of Australia’s R&D sector.

“These types of [R&D] companies exist in the US, but hardly at all in Australia,” Reilly said, citing US firms Raytheon BBN Technologies and SRI International as examples.

In December 2024, the Australian government’s National Reconstruction Fund announced a $13 million equity stake in local quantum technology company Quantum Brilliance, which designs room-temperature diamond quantum accelerators.

The federal government also previously pledged $470 million to support US company PsiQuantum’s efforts to build the world’s first utility-scale quantum computer in Brisbane.