Archer tightens the quantum screws while Biochip edges toward clinic

Archer Materials (ASX: AXE) has delivered a half year update that reads less like blue-sky research and more like a company methodically ticking off milestones on two technically demanding fronts - quantum computing and medical diagnostics.

For the six months to 31 December 2025, Archer trimmed its net loss to $2.99 million from $4.42 million previously, while pressing ahead with its 12CQ quantum project and advancing its potassium-sensing Biochip toward prototype and clinical readiness .

The numbers remain those of a development-stage technology house. But the operational progress suggests a company intent on proving it can build devices, not just publish papers.

Quantum readout - from theory to current flow

The headline technical achievement was electrical readout of quantum states in Archer’s proprietary carbon-based qubit materials. In plain English, the company demonstrated on-chip electrical detection of electron spin resonance using its EDMR devices, validating a path away from complex optical systems toward semiconductor-compatible architectures .

Executive chair Greg English described the breakthrough as validating “a scalable and semiconductor-compatible pathway toward practical quantum devices” . The emphasis on CMOS compatibility is deliberate. If quantum hardware is to sit alongside conventional electronics, it must eventually fit within the industrial logic of wafer-scale manufacturing.

Archer reported reproducible device performance across multiple fabrication cycles and demonstrated gating in its single-electron transistor architecture. Electron spin lifetimes exceeding 0.4 microseconds at room temperature were achieved in carbon films synthesised on 1-inch silicon wafers, reinforcing claims of material uniformity and scalability .

The roadmap now points to a targeted qubit demonstration in 2026, with early spin-state readout testing underway . That will be the litmus test for whether this remains a promising platform or graduates into a credible qubit contender.

TMR sensors - cold comfort for quantum systems

As part of the 12CQ program, Archer also demonstrated magnetic field measurements at cryogenic temperatures using its tunnelling magnetoresistance sensors .

While less glamorous than qubits, TMR sensors are critical to stabilising and monitoring quantum systems operating in extreme environments. The company sees applications not only in quantum hardware but also in aerospace and defence contexts. The cryogenic performance milestone nudges the technology further along the development curve, though commercial timelines remain undefined.

Biochip - dual track to the clinic

If quantum is the long game, the Biochip is pitched as the nearer-term commercial play.

Archer reported potassium measurement precision within plus or minus 0.3 mM in human blood, aligned with clinical laboratory standards . The company is pursuing a dual-platform strategy, developing both graphene-based and silicon-based devices to de-risk manufacturing and supply chains.

The silicon pathway received a boost through collaboration with IMEC, with first-stage results demonstrating accuracy equivalent to graphene devices and faster readout times . Silicon’s attraction lies in scalability and access to established semiconductor fabrication infrastructure.

Management says chip design is complete, fabrication is scheduled to commence and readout electronics are nearing final assembly, positioning the program for prototype-level testing this year . An alpha prototype integrating the Biochip, test cartridge and electronics was announced post period end on 30 January 2026, demonstrating stable system-level operation with clinical-grade accuracy .

Clinical trials are targeted for 2026, with regulatory pathway planning underway . The company ultimately sees the potassium test as a beachhead for broader diagnostic applications.

The ledger - steady burn, solid buffer

Financially, Archer remains pre-revenue, with no ordinary revenue recorded for the half . Direct expenditure on quantum and Biochip research totalled $3.04 million, up from $2.52 million a year earlier . Share-based payments fell sharply to $237,020 from $1.67 million, helping narrow the overall loss .

Cash and cash equivalents stood at $3.69 million at period end, with a further $6.58 million in short-term term deposits . The group has no corporate debt . Net tangible assets per share slipped to 5.22 cents from 7.20 cents at 30 June 2025, reflecting the steady drawdown typical of R&D-intensive businesses .

The R&D tax incentive remains a material contributor, with $1.38 million recognised as other income for the period .

Patents, partnerships and personnel

Archer continues to build out its intellectual property portfolio across quantum and Biochip technologies, with multiple patents granted and pending in key jurisdictions including the US, Europe and Asia .

The company expanded collaborations with Emergence Quantum and CSIRO, the latter focused on quantum machine learning applications in fraud detection . These alliances signal an intent to explore revenue-adjacent opportunities beyond core hardware.

On the board front, Andrew Just joined as non-executive director in December, bringing medical device and health industry experience that aligns neatly with the Biochip push .

From lab to leverage

Archer’s challenge remains consistent - converting credible technical progress into commercial leverage before the cash balance becomes the dominant narrative.

The half year result shows tangible movement on qubit readout, material scalability and diagnostic accuracy. The next 12 months, with a targeted qubit demonstration and Biochip prototype testing, will determine whether Archer can shift from being an intriguing research story to a company with defined commercial pathways.

For patient investors, the science is getting sharper. The market will want to see whether the revenue horizon comes into focus.