Shandong Urban Observations | From the “Lighthouse Factory” visited by Premier Li Qiang, we can see how Shandong is winning the future through “Intelligent Manufacturing.”
On February 2, Premier Li Qiang, a member of the Standing Committee of the Political Bureau of the Central Committee, conducted research in Shandong. He emphasized the importance of thoroughly implementing General Secretary Xi Jinping’s significant instructions on economic and social development for this year and the 14th Five-Year Plan period. Li stressed the need to combine long-term and short-term strategies, ensure a strong start to policy implementation, and effectively promote development and enhance people’s livelihoods.
During his visit to Jinan Erqi Machine Tool Group Co., Ltd., Li remarked that intelligent manufacturing is the main focus for driving technological changes and optimizing upgrades in the industry. He encouraged the active use of artificial intelligence to reshape the entire production chain and lifecycle.
Li’s statement, “Where the spring tide surges, it is the right time to advance,” points directly to the core of Shandong’s manufacturing transformation. It not only affirms the achievements of Shandong’s manufacturing sector but also outlines a path for high-quality development empowered by technological innovation in the region.
Inside the “Lighthouse Factory” of Jinan Erqi Machine Tool Group, intelligent robotic arms perform precise operations, while a digital twin system simulates the entire production process in real-time. Established in 1937, this renowned enterprise exports products to 67 countries and regions, with plans to achieve an operating income of 4.5 billion yuan by 2025, reflecting a 10.6% increase from the previous year.
According to reports, during his first stop at Jinan Erqi, Li inspected the production line of the lighthouse factory. He inquired in detail about subtractive and additive manufacturing processes and the application of new materials, expressing approval for the company’s ongoing digital transformation to enhance its competitiveness. He stressed the importance of focusing on technological innovation while maintaining scale advantages, driving product iterations, and improving autonomous control capabilities.
Li called for increased R&D investment based on the needs of relevant industries, especially emerging and future sectors, and emphasized enhancing the synergy between hardware and software to continuously increase high-quality supply.
The transformation and upgrade of Jinan Erqi are emblematic of the intelligent development of Shandong’s manufacturing industry. As a key player in the industrial mother machine supply chain, the company is now among the “top three CNC stamping equipment manufacturers in the world.” The D6 lighthouse factory project under construction will feature three flexible processing lines and two press assembly lines, equipped with smart warehousing logistics and a central tool distribution center. This initiative aims to revolutionize the existing production organization model, propelling the enterprise towards digitalization, intelligence, and greening, and creating a new manufacturing system of “digital twin + flexible manufacturing.”
Furthermore, Jinan Erqi plans to invest 336 million yuan in the Huaiyin main plant area to establish a future innovation center that will form a “1+N” new R&D system. This project will rely on national key laboratories, pilot validation platforms, manufacturing innovation centers, and metrology testing centers to build a core platform for digital transformation and intelligent upgrading, positioning itself as a source of original technology for high-end machine tools.
This intelligent manufacturing initiative is not an isolated case. As a core growth engine of Shandong, Jinan focuses on key areas like industrial mother machines and intelligent equipment, encouraging companies to increase R&D investments and strengthen hardware-software collaborative innovation. Numerous enterprises, like Jinan Erqi, have achieved remarkable improvements in production efficiency and product quality through digital transformation.
On January 15, 2026, the World Economic Forum announced the latest list of global “Lighthouse Factories.” Among the 23 newly recognized “Lighthouse Factories,” 16 are located in China. Qingdao is also showcasing its intelligent manufacturing strength through the establishment of a cluster of “Lighthouse Factories.” The latest list from the World Economic Forum includes three companies from Qingdao: Hisense Hitachi Air Conditioning Systems, Haier (Jiaozhou) Air Conditioning, and Qingdao Beer, bringing Qingdao’s total to seven lighthouse factories, tying with Suzhou for the highest number among cities in the country.
Data indicates that the digital transformation coverage rate among Shandong’s industrial enterprises has exceeded 95%, laying a solid foundation for intelligent manufacturing.
Accelerated Development of Artificial Intelligence
Shandong’s intelligent manufacturing is not the result of isolated efforts but a collective development trend. The province has nurtured ten provincial-level artificial intelligence industrial clusters. Notably, the Jinan-Qingdao Artificial Intelligence Innovation Application Pilot Zone has achieved remarkable results, gathering over 60% of the province’s AI enterprises.
It is noteworthy that on the evening of January 25, the top ten scientific innovation achievements in Shandong for 2025 were announced in Jinan, including specialized transport ships for new energy vehicles and specialized chips for edge AI perception scenarios. Among these, the specialized chip was released in June 2025 by Qingdao Galaxy Edge Technology Co., Ltd., primarily used in smart home appliances like air conditioners, refrigerators, and washing machines, showcasing Shandong’s strength in the AI hardware sector.
The term “artificial intelligence” has frequently appeared in Shandong’s government work report this year. The report emphasizes efforts to strengthen original innovation and scientific research layout, implementing major basic research projects of “artificial intelligence + scientific research.” The aim is to bolster four emerging industries projected to reach a scale of over one trillion yuan.
The report specifies the implementation of the “Double Hundred Project” for artificial intelligence, aiming to cultivate over 100 distinctive enterprises and develop more than 100 large models and intelligent agents across various industries and scenarios. Additionally, it is projected that by 2025, the core industry revenue of artificial intelligence in Shandong will exceed 120 billion yuan. The plan aims to surpass 200 billion yuan by 2027, with an annual growth rate exceeding 30%, driving the scale of related industries to exceed one trillion yuan.
In terms of computing power infrastructure, Shandong will support the construction of centralized intelligent computing centers in key cities like Jinan, Qingdao, and Yantai, establishing a cross-regional computing power scheduling mechanism. These measures aim to solidify the digital foundation for artificial intelligence development.
Simultaneously, Shandong’s foundation for original innovation is continuously being strengthened. The government work report indicates that during the 14th Five-Year Plan period, R&D investment across society will grow annually by 11.5%, surpassing the national average by one percentage point. The number of high-tech enterprises has increased by over 20,000 in five years.
As an economic powerhouse with all 41 industrial categories, Shandong’s intelligent manufacturing transformation practices not only fortify its industrial backbone but also provide replicable and promotable “Qilu Experience” for the national manufacturing sector’s transformation and upgrading.
As Shandong embarks on the critical early stages of the 14th Five-Year Plan, it will undoubtedly continue to deepen its efforts in intelligent manufacturing and technological innovation, employing solid measures and robust momentum to paint a new picture of building a strong province in scientific and technological innovation.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/shandongs-smart-manufacturing-revolution-insights-from-premier-li-qiangs-visit-to-a-lighthouse-factory/
