TORONTO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Xanadu (Xanadu Quantum Technologies Inc.), a world leader in photonic quantum computing, in partnership with Mitsubishi Chemical, a major Japanese chemical manufacturer, has announced the release of a new paper detailing a novel quantum simulation technique for semiconductor chip research and development. The pre-print research paper provides a scalable technique for simulating quantum processes involved in extreme ultraviolet (EUV) lithography, a wafer patterning technique critical for developing the most advanced semiconductor chips.

EUV lithography is one of the leading tools used in the manufacturing of advanced semiconductor chips. However, the process is often plagued by a complex phenomenon called radiation-induced blurring that reduces the effectiveness of the resulting chip. Key steps in this phenomenon are highly quantum in nature and are difficult to simulate using existing classical computing approaches. This paper proposes a suite of novel quantum simulation algorithms that could be used to reduce these blurring effects, overcoming difficult barriers for fabricating more advanced chips.

"Precise modeling of materials interacting with EUV light is a formidable challenge for the semiconductor industry," said Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. "By simulating EUV sensitivity using quantum algorithms, Xanadu has developed a blueprint for how quantum computers can be used to tackle some of the most relevant problems facing the semiconductor market today."

This work shows that one of the key methods presented, designed to run on utility-scale fault tolerant quantum computers (FTQCs), predicts critical details of the EUV photoabsorption spectrum. For a target model system, such as 4-Iodo-2-methylphenol, the algorithm demonstrates the potential to meet strict resource requirements, targeting fewer than 500 qubits, which is essential for execution on early FTQC machines, such as those envisioned by Xanadu.

"Accurately modelling the coupled electronic and chemical dynamics that drive EUV-induced blur has been a long-standing challenge for the semiconductor industry. Mitsubishi Chemical is pleased to partner with Xanadu in applying quantum simulation to EUV photoresist design. The results demonstrate promising approaches to modelling the complex radiation-driven processes that limit lithographic resolution," said Qi Gao, Senior Chief Scientist, Mitsubishi Chemical Corporation

Through their collaboration, Xanadu and Mitsubishi Chemical have established one of the first concrete industrial use cases for quantum computing for semiconductors. By providing a method to accurately simulate and reduce radiation-induced blurring in EUV lithography, this work paves the way for the development of ever-smaller and more complex semiconductor chips.

About Xanadu

Xanadu is a Canadian quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Founded in 2016, Xanadu has become one of the world's leading quantum hardware and software companies. The company also leads the development of PennyLane, an open-source software library for quantum computing and application development. Visit xanadu.ai or follow us on X (formerly Twitter) @XanaduAI.

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About Mitsubishi Chemical

Mitsubishi Chemical Corporation, established in 1933, is a comprehensive chemical manufacturer that provides a wide range of materials, from basic chemicals to performance products. The company operates globally across diverse fields including mobility, semiconductors and communications, food, medical, and infrastructure. Mitsubishi Chemical aims to be a "Green Specialty Company" committed to solving social problems and to delivering impressive results to customers with the power of materials, under our Purpose that "We lead with innovative solutions to achieve KAITEKI, the well-being of people and the planet." For further information, please visit our website: https://www.m-chemical.co.jp/en/products/

Business Combination

Xanadu recently announced a business combination agreement with Crane Harbor Acquisition Corp. ("Crane Harbor") (NASDAQ:CHAC), a publicly traded special purpose acquisition company. The combined company, Xanadu Quantum Technologies Limited ("NewCo"), is expected to be capitalized with approximately US$500 million in gross proceeds, comprising approximately US$225 million from Crane Harbor's trust account, assuming no redemptions by Crane Harbor's public stockholders, as well as US$275 million from a group of strategic and institutional investors participating in the transaction via a common equity committed private placement investment. NewCo is expected to be listed on the Nasdaq Stock Market and on the Toronto Stock Exchange.

About Crane Harbor Acquisition Corp

Crane Harbor Acquisition Corp is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

Additional Information About the Proposed Transaction and Where to Find It

The proposed business combination transaction will be submitted to shareholders of Crane Harbor and Xanadu for their consideration. NewCo and Crane Harbor have jointly filed a registration statement on Form F-4 (the "Registration Statement") to the U.S. Securities and Exchange Commission (the "SEC"). The Registration Statement includes a proxy statement/prospectus to be distributed to Crane Harbor's shareholders in connection with Crane Harbor's solicitation of proxies for the vote by Crane Harbor's shareholders in connection with the proposed transaction and other matters to be described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to Xanadu's shareholders in connection with the completion of the proposed transaction. After the Registration Statement has been publicly filed and declared effective by the SEC, a definitive proxy statement/prospectus and other relevant documents will be mailed to Crane Harbor shareholders as of the record date established for voting on the proposed transaction. Before making any voting or investment decision, Crane Harbor's shareholders and other interested persons are advised to read, once available, the preliminary proxy statement/prospectus and any amendments thereto and, once available, the definitive proxy statement/prospectus, as well as other documents filed with the SEC by NewCo and/or Crane Harbor in connection with the proposed transaction, as these documents will contain important information about NewCo, Crane Harbor, Xanadu and the proposed transaction. Shareholders may obtain a copy of the preliminary or definitive proxy statement/prospectus, once available, as well as other documents filed by NewCo and/or Crane Harbor with the SEC, without charge, at the SEC's website located at www.sec.gov, Crane Harbor's website at www.craneharboracquisition.com or by emailing investors@xanadu.ai.

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the U.S. federal securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events. These statements include: the stock exchanges on which the shares of the combined company are expected to trade; pro forma enterprise value of the combined company; market capitalization of the combined company; proceeds from the business combination and related PIPE; funds received by the combined company from Crane Harbor's trust account and redemptions by Crane Harbor's public shareholders; projections regarding Xanadu's ability to commercialize new products and technologies and the timing thereof; the successful consummation and potential benefits of the proposed transaction and expectations related to its terms and timing; Xanadu becoming the first and only publicly traded pure-play photonic quantum computing company; and the expected timing of closing of the business combination.

These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of Xanadu and Crane Harbor. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the actual results of the combined company following the proposed transaction, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that Xanadu is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; Xanadu's historical net losses and limited operating history; that there is substantial doubt about Xanadu's ability to continue as a going concern; Xanadu's expectations regarding future financial performance, capital requirements and unit economics; Xanadu's use and reporting of business and operational metrics; Xanadu's competitive landscape; Xanadu's dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; Xanadu's ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; Xanadu's reliance on strategic partners and other third parties; Xanadu's concentration of revenue in contracts with government or state-funded entities; Xanadu's ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use, rate of adoption, and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; material weaknesses in Xanadu's internal control over financial reporting and the combined company's ability to maintain internal control over financial reporting and operate as a public company; the possibility that required shareholder and regulatory approvals for the proposed transaction are delayed or are not obtained, which could adversely affect the combined company or the expected benefits of the proposed transaction; the risk that shareholders of Crane Harbor could elect to have their shares redeemed, leaving the combined company with insufficient cash to execute its business plans; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the outcome of any legal proceedings or government investigations that may be commenced against Xanadu or Crane Harbor; failure to realize the anticipated benefits of the proposed transaction; the ability of Crane Harbor or the combined company to issue equity or equity-linked securities in connection with the proposed transaction or in the future; and other factors described in Crane Harbor's filings with the SEC. These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions, and that no significant events occur outside the ordinary course of business. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings and potential filings by Xanadu, Crane Harbor or the combined company resulting from the proposed transaction with the SEC, including under the heading "Risk Factors." If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, these statements reflect the expectations, plans and forecasts of Xanadu's and Crane Harbor's management as of the date of this communication; subsequent events and developments may cause their assessments to change. While Xanadu and Crane Harbor may elect to update these forward-looking statements at some point in the future, they specifically disclaim any obligation to do so, unless required by applicable securities laws. Accordingly, undue reliance should not be placed upon these statements.

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An investment in Crane Harbor is not an investment in any of Crane Harbor's founders' or sponsors' past investments, companies or affiliated funds. The historical results of those investments are not indicative of future performance of Crane Harbor, which may differ materially from the performance of Crane Harbor's founders' or sponsors' past investments.

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Participants in the Solicitation

NewCo, Crane Harbor, Xanadu and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from Crane Harbor's shareholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Crane Harbor's shareholders in connection with the proposed transaction will be set forth in proxy statement/prospectus when it is filed by NewCo with the SEC. You can find more information about Crane Harbor's directors and executive officers in Crane Harbor's final prospectus related to its initial public offering filed with the SEC on April 25, 2025 and in the subsequent Quarterly Reports on Form 10-Q filed by Crane Harbor with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement/prospectus when it becomes available. Shareholders, potential investors and other interested persons should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources described above.

Xanadu and Mitsubishi Chemical Make Breakthrough Quantum Algorithms for Next-Generation Semiconductor Manufacturing