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Industry

Smart manufacturing brings about AI-native factories in China

August 20, 2026


Abstract : In a sprawling industrial park, every seven seconds, one air conditioner rolls off an unmanned assembly line at a dark workshop with self-perception and self-decision capabilities.

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An industrial robot operates in a digital workshop at Dongguan Moldbao Smart Technology Co. in Dongguan, south China's Guangdong Province, July 2, 2026. (Xinhua/Liang Xu)

GUANGZHOU, Aug. 20 (Xinhua) -- In a sprawling industrial park, every seven seconds, one air conditioner rolls off an unmanned assembly line at a dark workshop with self-perception and self-decision capabilities.

This is a novel scene of smart manufacturing at Chinese tech giant TCL in Guangzhou, capital of south China's Guangdong Province. The complex heralds a profound transformation in how home appliances are engineered and manufactured.

"In the past, factories simply combined information technology with manufacturing. With the rapid development of artificial intelligence (AI), we have integrated AI into every step when building this facility," said Li Xin'an, general manager of TCL's air conditioning division in Guangzhou. "This is a truly AI-native factory."

With an investment of nearly two billion yuan (about 294 million U.S. dollars), TCL's phase I at the Nansha industrial park has a designed annual capacity of eight million units. Around four million units are expected to be produced in 2026.

"We are a manufacturing-first company, and we intend to export this advanced manufacturing model globally," Li said, adding that new bases in Thailand and Pakistan will soon build on the proven model established here to step up their operations.

The park houses three fully flexible "lights-out" factories, 15 advanced laboratories, and 10 intelligent production lines. Anchoring the site is an AI data supercomputing center featuring 106 server cabinets, which supports real-time data collection from 32,000 IoT sensors and enables parallel computing of over 2,000 AI agents across the park.

These agents are particularly instrumental in product inspection. Li said that AI has empowered this process with comprehensive sensory capabilities. For instance, infrared sensors detect refrigerant leaks, while specialized lighting creates surgical-grade illumination for microscopic visual checks.

Beyond efficiency, the park serves as a testbed for sustainable manufacturing. A 50,000-square-meter solar array, paired with industrial-scale energy storage, is managed by AI algorithms that dynamically allocate power and resources. Saving the equivalent of over 2,000 tonnes of standard coal annually, the facility has achieved near-zero emissions for solid waste, exhaust and water.

The agility of AI-driven manufacturing is already yielding dividends in international markets. TCL reported a 30 percent year-on-year sales increase for its air conditioners in Europe in the first half of 2026, with mobile ones surging by 100 percent. In core markets like Britain, France, and the Nordics, sales soared by 300 percent.

Similarly, rival appliance giant Gree has upgraded its smart factory in Jinwan district, Zhuhai, Guangdong Province, where an 80 percent automation rate has reduced the workforce needed on a 480-meter outdoor unit assembly line from over 70 people to just 20.

The transformation of TCL and Gree demonstrates a broader national momentum. China's 15th Five-Year Plan (2026-2030) explicitly prioritizes the "AI Plus" initiative, aiming to accelerate the digital and intelligent transformation of manufacturing. This national goal is to foster new quality productive forces by deeply integrating digital technologies with the real economy.

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Keyword: smart manufacturing AI-native factories

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