Investment Blog

Integrated Manufacturing: A Productivity Boost

Advertisements

In recent years, the intersection of artificial intelligence (AI) and robotics has led to remarkable developments that have the potential to reshape various sectors, from manufacturing to servicesA shining example of this progress comes from the Beijing Humanoid Robot Innovation Center, which unveiled its self-developed humanoid robot, “Tiangong.” With significant advancements in both mobility and stability, this robot has demonstrated an impressive ability to navigate stairs without a single misstep and maintain balance while running on snow-covered surfacesThese achievements mark a substantial leap forward in robotics, reflecting the center’s larger mission of integrating AI with the service and manufacturing industries to promote broader innovation and application.

The "Tiangong" robot is a product of global collaboration, with contributions from research institutions, universities, and enterprises all coming together to tackle some of the key challenges in humanoid roboticsIts success represents more than just technological advancement—it is an embodiment of the global efforts to push the boundaries of what robotics can achieve in practical, real-world scenariosBy overcoming obstacles such as navigating stairs and performing in difficult outdoor conditions, the robot showcases not only the advanced technology behind its design but also the increasing capability of humanoid robots to perform tasks that were once thought to be reserved for humans.

This development is set against the backdrop of broader trends in China, where there has been a notable acceleration in the integration of the manufacturing and productive service sectorsThese sectors are critical in supporting industrial production and driving technological innovationFor instance, in the case of "Tiangong," the advancements are not confined to mere laboratory achievements but extend to practical applications that can help streamline processes and enhance efficiency in industrial environments

Advertisements

The robot's ability to operate across varied terrains demonstrates its potential to serve in industries such as logistics, manufacturing, and even healthcare, where its versatility could prove invaluable in performing tasks like delivery or assisting medical professionals.

The distinction between life services and productive services is important when discussing these innovationsWhile life services typically focus on consumer-facing needs—such as retail, healthcare, or hospitality—productive services play a more direct role in the continuity of industrial operationsThese services facilitate technological advancements, sector upgrades, and the smooth functioning of industrial processesExamples of productive services include technological services, information services, logistics, and modern exhibition servicesAs the integration of these sectors deepens, industries stand to benefit from a more holistic approach to production and service delivery, helping to create more robust and adaptable economic systems.

The progress demonstrated by "Tiangong" is also a reflection of the broader momentum within the country’s manufacturing and technological sectorsFor instance, microelectronics is an area where significant breakthroughs have been made, particularly in the field of power semiconductorsThe production workshop of China Resources Microelectronics in Chongqing recently announced key advancements in semiconductor technologies, with a goal to launch a series of new products by 2025. These innovations are backed by collaborations with the Chengdu University of Electronic Science and Technology’s Microelectronics Industry Technology Research Institute, showcasing the importance of academia-industry partnerships in driving technological progressThese breakthroughs in the semiconductor field play a crucial role in supporting other high-tech industries, providing the critical components needed to power AI systems and robotics like the "Tiangong."

The role of AI in advancing industrial sectors has been underscored by the recent surge in applications utilizing DeepSeek, a series of AI models that are being integrated into various manufacturing processes

Advertisements

One significant partnership that has captured attention is between China Petroleum and Chemical Corporation (Sinopec) and China TelecomTogether, they have deployed the DeepSeek-R1 large model, which leverages the computing power of Tianyi Cloud to drive efficiency in industrial operationsThis collaboration highlights not only the growing importance of AI in industrial applications but also the strategic role that technology companies are playing in accelerating this shiftBy enhancing the intelligence of manufacturing processes, AI is enabling companies to streamline operations, improve product quality, and reduce costs.

Additionally, Inspur Cloud has partnered with companies such as Muxi Holdings and Chuanxing Technology to create an integrated hardware solution capable of running DeepSeek-R1 and DeepSeek-V3 modelsThis initiative aims to provide a comprehensive solution for the deployment of large AI models in industrial settings, further reinforcing the importance of AI in driving the transformation of the manufacturing sectorWith the support of domestic companies like these, China is positioning itself as a leader in the development and application of AI-powered solutions for industries worldwide.

The momentum for the merging of manufacturing and productive service industries is evident not only in the private sector but also in government initiatives aimed at fostering this integrationLocal governments across China, including in regions such as Dongguan, Jining, and Xining, are rolling out policies designed to strengthen the development of productive service sectorsThese efforts are further supported at the national level, with the Ministry of Industry and Information Technology planning to accelerate the development of technological services in the coming yearsBy creating a unified national technological transaction service platform and establishing high-level incubators for tech enterprises, the government is laying the groundwork for sustained innovation in the industrial sector.

One of the most critical aspects of this transformation is the increasing role of technological and productive services in enhancing the value-added component of the manufacturing sector

Advertisements

In fact, it is estimated that nearly 50% of the value of high-end manufacturing comes from the embedded services that accompany hardware productsTake the example of a smartphone—while the physical components such as chips, screens, and batteries are essential, it is the value-added elements like the operating system, software applications, and intellectual property patents that significantly contribute to its overall market valueThis shift is a recognition that the future of manufacturing lies not just in producing physical goods but also in embedding services that add functionality, efficiency, and intelligence to products.

Sheng Songcheng, the head of the China Chief Economist Forum’s research institute, has highlighted the indispensable role that productive services—particularly those with high added value—play in the development of new productive forcesThis is an essential part of China’s broader economic strategy to maintain growth and competitiveness in an increasingly technology-driven global marketPan Xiangdong, chief economist of the Qi Ran Research Institute, further emphasized that the structural optimization of China’s industrial economy is focused on cultivating new productive forces while driving the transformation and upgrading of the manufacturing sector.

Looking ahead, the industrial landscape in China is expected to continue its evolutionWith a suite of new policies and initiatives set to take effect in 2025, the country is poised to see substantial growth in industrial value added, particularly in high-tech industriesLarge-scale industrial enterprises are expected to experience promising increases in profit margins, with the overall performance likely to surpass the achievements of 2024. As China continues to push the boundaries of technological innovation and collaboration between manufacturing and service sectors, the future of AI, robotics, and industrial processes looks more integrated and dynamic than ever before

Advertisements

Advertisements

Write A Review

Etiam tristique venenatis metus,eget maximus elit mattis et. Suspendisse felis odio,

Please Enter Your Comments *