Shenzhen’s “AI Plus” Advanced Manufacturing Action Plan (2026-2027): A Comprehensive Guide to China’s Next Industrial Revolution

In February 2026, the Shenzhen Bureau of Industry and Information Technology (Shenzhen Shi Gongye He Xinxi Hua Ju 深圳市工业和信息化局) issued a groundbreaking strategic initiative that’s reshaping how manufacturing operates in China’s tech epicenter.

The “Shenzhen ‘AI Plus’ Advanced Manufacturing Action Plan (2026-2027)” isn’t just another policy document.

It’s a detailed roadmap for integrating artificial intelligence across every layer of manufacturing—from R&D design to supply chain management.

If you’re an investor, founder, or operator paying attention to China’s manufacturing transformation, this is essential reading.

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What is “AI Plus” Manufacturing, Really?

Let’s cut through the bureaucratic language first.

“AI Plus” manufacturing means taking artificial intelligence and embedding it into traditional manufacturing processes at scale.

We’re talking about:

• AI-powered R&D design — algorithms that optimize product development
• Intelligent production management — systems that predict and prevent bottlenecks
• Autonomous production operations — machines making real-time decisions
• Smart operational management — data-driven resource allocation
• AI-optimized supply chains — end-to-end visibility and forecasting

This isn’t futuristic talk.

Shenzhen is literally implementing this right now.

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Shenzhen’s Ambitious Vision: “One Base, One Center, One Alliance, One Hundred Scenarios, Multiple Applications”

By 2027, here’s what Shenzhen aims to build:

This is ambitious, but it’s also concrete.

The city isn’t just talking about AI—it’s allocating resources and defining measurable outcomes.

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The Three Foundational Pillars

1. Industrial Agent Innovation Center: Building Digital Employees

Here’s where things get interesting.

Shenzhen is prioritizing the development of industrial agents—AI systems that function like digital employees.

What makes them different from traditional automation?

• Environmental perception — they see and understand their surroundings in real-time
• Autonomous decision-making — they don’t just follow pre-programmed paths; they adapt to new situations
• Dynamic adaptation — they learn and improve continuously

The center will focus on:

• Building supply-demand matching platforms that connect AI solutions with manufacturers who need them
• Developing independent technology foundations so China reduces reliance on foreign tech stacks
• Creating open ecosystems where different agents collaborate seamlessly in complex industrial environments

This is strategic.

By building the infrastructure now, Shenzhen positions itself as the global hub for industrial AI development.

2. Industrial Software & Industrial Knowledge Alliance: Democratizing AI

Here’s a critical insight: industrial knowledge is the bottleneck.

It’s hard to build effective AI systems without understanding how manufacturers actually work.

Shenzhen’s approach?

Transform industrial knowledge into standardized models that can power AI systems.

Key focus areas include:

But here’s the thing: not every manufacturer has the compute power or budget for massive large language models.

So Shenzhen is also investing heavily in “small models” using:

• Pruning — removing unnecessary neural network connections
• Quantization — reducing precision to cut memory requirements
• Distillation — compressing knowledge from large models into efficient ones

The goal?

Edge deployment — running AI on local devices, not cloud servers.

This solves a real problem: latency, privacy, and cost for SMEs that can’t afford massive AI infrastructure.

The Industrial Knowledge Alliance will be built as an open community platform that aggregates knowledge from:

• Enterprises (who understand real workflows)
• Universities (who conduct research)
• Research institutes (who validate and improve solutions)

3. Lowering the Barrier to Entry: Making AI Accessible to SMEs

One of the smartest moves in this plan is a focus on Small and Medium Enterprises (SMEs).

Why?

Because SMEs make up the majority of Shenzhen’s manufacturing base, but they often can’t afford custom AI development.

The solution: integrate technical resources and industry data to lower the threshold for AI transformation.

This means:

• Pre-built AI solutions for common manufacturing problems
• Access to industry datasets to train models faster
• Shared infrastructure so SMEs don’t need to build from scratch

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The Eight Strategic Manufacturing Sectors Getting AI Superpowers

• Electronic Information Manufacturing
• Semiconductors & Integrated Circuits
• Automotive Manufacturing
• Robotics
• High-Performance Materials
• Low-Altitude Economy
• Pharmaceuticals & Medical Devices
• Traditional Advantageous Industries (Apparel, Jewelry, etc.)

1. Electronic Information Manufacturing: AI Phones & Smart Devices

This is where consumer hardware lives.

Key AI applications:

• Product testing — AI systems that detect defects faster than humans
• Quality inspection — computer vision checking every unit for flaws
• Safety production — predictive systems that catch issues before they happen

Growth opportunities:

• AI phones — the obvious play (and Shenzhen is the hardware hub)
• AI glasses — spatial computing is exploding
• AI trendy toys — interactive, voice-enabled consumer products
• AI smart screens — displays that understand context and respond intelligently

This sector is a proven winner for Shenzhen.

The city’s ecosystem of manufacturers, suppliers, and logistics already exists.

AI just makes it faster and smarter.

2. Semiconductors & Integrated Circuits: Chip Design Optimization

This is where the real technical challenge lives.

AI applications in chip manufacturing:

• Chip design optimization — AI algorithms that find better layouts and improve performance
• Software code efficiency — automated optimization of the code that runs on chips
• Specialized SoC chips — custom processors for AI terminals (phones, edge devices, etc.)

There’s also a major play here in the New Energy Vehicle (NEV) market:

• Domestic replacement of 14nm and below automotive-grade AI chips — critical for self-driving capability
• Smart cockpit SoC chips — the computer that powers the vehicle’s interior intelligence
• Domain controller MCUs — microcontrollers that manage different vehicle systems

Translation: Shenzhen is positioning itself to supply the brains for China’s booming EV industry.

3. Automotive Manufacturing: Vehicle-Road-Cloud Integration

This is a big one.

The action plan specifically mentions launching “Vehicle-Road-Cloud Integration” pilots.

What does that mean?

Connected vehicles that talk to road infrastructure and cloud systems in real-time.

AI applications across the value chain:

This directly addresses one of manufacturing’s biggest pain points: getting products to market faster without sacrificing quality.

4. Robotics: World Models & Embodied Intelligence

This is one of the most exciting sectors in the plan.

Shenzhen is investing in World Models and multimodal interaction technologies.

What’s a World Model?

It’s an AI system that builds an internal representation of how the physical world works—similar to how humans understand physics intuitively.

Key technology focus: Vision-Touch-Language-Action (VTLA)

This means robots that can:

• See (vision) — understanding visual scenes
• Feel (touch) — sensing force and texture
• Understand language — interpreting instructions
• Take action — executing tasks in the physical world

The goal is building embodied intelligence foundation models with:

• Interaction capabilities — responding to their environment
• Prediction functions — anticipating what happens next
• Decision-making — choosing the right action

Real-world deployment targets:

• Welding — precision, repetitive tasks
• Assembly — dexterity-intensive work
• Spraying — hazardous tasks humans prefer to avoid
• Operations in factories, workshops, warehouses, ports, and industrial parks

This is the future of manufacturing automation.

It’s not just robots following programs—it’s robots that understand context and adapt.

5. High-Performance Materials: AI-Driven Material Science

This is a sleeper hit in the plan.

Developing new materials is expensive and slow.

AI changes that equation.

Key applications:

• Dynamic process optimization — AI adjusts manufacturing parameters in real-time to improve quality
• Machine learning prediction — algorithms predict properties of polymers, metals, and ceramics before they’re manufactured
• Material design assistance — AI helps researchers design high-performance materials faster
• Synthesis path optimization — finding the most efficient way to create new compounds

The impact: faster innovation cycles for materials that power everything from electronics to aerospace.

6. Low-Altitude Economy: Autonomous UAVs & Digital Twin Systems

This is an emerging sector, and Shenzhen is betting on it early.

What’s the low-altitude economy?

It’s drones and aerial vehicles operating in the airspace below traditional aircraft (roughly under 3,000 meters).

Shenzhen’s AI strategy includes:

Use cases:

• Park inspections — monitoring large areas efficiently
• Logistics transportation — last-mile delivery via air
• Aerial sightseeing — tourism and experience applications

This is fascinating because it’s not mature yet.

Shenzhen is positioning itself to lead as the industry develops.

7. Pharmaceuticals & Medical Devices: AI+BT Integration

This is critical for public health and creates massive business opportunity.

AI applications in pharma:

• Drug target discovery — AI identifies which proteins to target for new drugs
• Virtual screening — testing millions of compounds computationally instead of physically
• Gene site selection — finding optimal genetic targets for therapies

For medical devices:

• Medical imaging auxiliary diagnosis — AI that analyzes X-rays, MRIs, and CT scans alongside doctors
• Intelligent component upgrades — making devices smarter and more capable

The focus: high-end medical devices where innovation drives value.

This is a sector where China has historically relied on imports.

Domestic innovation could be transformative.

8. Traditional Advantageous Industries: Creative Transformation

Shenzhen doesn’t ignore its heritage.

The plan specifically addresses traditional industries that have been the city’s backbone:

• Apparel
• Watches
• Eyewear
• Jewelry
• Furniture
• Leather goods

The transformation strategy:

This is important because it shows Shenzhen isn’t abandoning traditional industries—it’s modernizing them.

A watch company can now compete on design innovation, not just cost.

A furniture maker can offer mass customization.

This keeps millions of jobs relevant in the AI era.

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How Shenzhen Will Actually Make This Happen: The Implementation Strategy

Policy & Financial Support

Plans only work if they’re funded.

Shenzhen’s approach:

• Increase financial support for “AI Plus” advanced manufacturing projects
• Open Competition mechanism (Jie Bang Gua Shuai 揭榜挂帅) — a government system where organizations post challenges and innovators compete to solve them with funding as the prize
• Policy alignment — connecting AI initiatives with existing technical renovation, Industrial Internet, and digital transformation programs

The “Open Competition” model is particularly smart.

It incentivizes innovation without the government picking winners.

Problems get solved, and the best solutions win funding.

Opening Scenarios: Building the Demand Side

Technology only matters if companies actually use it.

Shenzhen is creating the infrastructure to connect supply and demand:

• Municipal and district-level application scenario open centers — physical and digital hubs where challenges are posted
• Published lists of scenario requirements — transparency about what problems need solving
• Support for leading enterprises opening their scenarios — large manufacturers share their challenges with solution providers

This is crucial for SMEs.

A small manufacturer can’t afford a team of AI researchers.

But if solutions providers know exactly what problems need solving, they can build products that address multiple SMEs at once.

Training, Promotion & Knowledge Sharing

Culture and capability matter.

Shenzhen’s approach:

• Regular training programs on “AI Plus” advanced manufacturing addressing industry pain points
• Collection and promotion of typical AI solutions and case studies — showing what works
• Building a strong atmosphere for AI-empowered New Industrialization — social proof and FOMO driving adoption

This is the soft infrastructure that makes hard infrastructure work.

If manufacturers understand what’s possible and see successful peers implementing AI, adoption accelerates.

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What This Means for Investors, Founders & Operators

For Investors

This action plan is a roadmap for capital deployment.

Companies building in these eight sectors with AI integration will have:

• Government support and potential funding
• Access to shared infrastructure and datasets
• A thriving ecosystem of customers (the thousands of manufacturers in Shenzhen)
• Policy tailwinds (the government is actively promoting these technologies)

Priority sectors to watch: industrial agents, semiconductor design, automotive AI, and robotics.

These get the most emphasis in the plan.

For Founders Building AI Solutions

The “scenario opening” approach is gold for solution providers.

If you’re building AI tools for:

• Quality inspection
• Supply chain optimization
• Design automation
• Production forecasting

You have a built-in customer acquisition channel.

Register with the scenario opening centers, demonstrate your solution, and you’ll get access to manufacturers actively looking for exactly what you’ve built.

The knowledge alliance also creates an opportunity: companies that help aggregate and standardize industrial knowledge will be highly valuable.

For Manufacturers & Industrial Operators

This plan is designed for you, even if it doesn’t feel like it.

Here’s what’s coming:

• Lower barriers to AI adoption — solutions built specifically for SMEs, not just enterprise behemoths
• Government-funded research and development — technology you don’t have to fund entirely yourself
• Competitive pressure — your competitors are getting access to the same tools, so you need to move fast
• New talent and skills development — training programs to upskill your workforce

The practical move: Start exploring what AI solutions exist for your specific challenges now.

Don’t wait for government mandates.

First movers will capture disproportionate value.

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The Broader Context: New Industrialization

This plan is anchored in a larger strategy called “New Industrialization”.

What is it?

It’s essentially China’s bet that the next wave of economic growth comes from making things smarter and more efficient through AI and digital integration.

Instead of competing with low-cost labor (where Bangladesh and Vietnam have advantages), China competes on:

• Technology — AI-powered manufacturing beats cheap labor
• Ecosystem strength — Shenzhen’s density of suppliers, manufacturers, and innovators is unmatched
• Scale — the domestic market is massive, allowing companies to achieve economies of scale quickly
• Speed of innovation — the entire system is set up to iterate rapidly

This Shenzhen action plan is one piece of a much larger national strategy.

Similar initiatives are rolling out across other Chinese cities and manufacturing hubs.

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Bottom Line: AI Plus Manufacturing is No Longer Coming—It’s Here

Shenzhen’s “AI Plus” Advanced Manufacturing Action Plan (2026-2027) isn’t theoretical.

It’s a detailed, funded, government-backed initiative to embed AI across an entire manufacturing ecosystem.

By 2027, Shenzhen aims to have:

• 100 application scenarios where manufacturing companies are using AI
• 100 vertical industry models and agents tailored to specific sectors
• 100 demonstration applications proving the concept works
• An entire infrastructure (platforms, knowledge bases, training programs) supporting continued innovation

For investors, the message is clear: there’s capital deployment opportunity in industrial AI solutions across eight priority sectors.

For founders, the message is equally clear: there’s a huge customer base of manufacturers actively looking for solutions, and government-backed programs to support your growth.

For manufacturers, the message is urgent: your competitors are getting access to these tools, and first movers will dominate.

The age of “AI Plus” manufacturing isn’t coming to Shenzhen.

It’s already here.

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References

• Shenzhen “AI Plus” Advanced Manufacturing Action Plan (2026-2027) – Shenzhen Bureau of Industry and Information Technology
• Latest Policies on New Industrialization – Shenzhen Municipal People’s Government
• Guiding Opinions on AI Plus Action – Ministry of Industry and Information Technology (MIIT)