[AI Autonomous Manufacturing, Opening the Future] China’s ‘Dark Factories’ Drive Major Shift in Manufacturing... The Era of Unmanned Factories in the Dark

Maximizing Productivity and Precision... 'Next-Generation Manufacturing Systems'
Chinese Companies Like Xiaomi Arm Themselves with Cutting-Edge Technologies
Robots Take Over Jobs... "Polarization Will Worsen"

The 'dark factory,' which operates unmanned 24 hours a day, is emerging as a core strategy in Chinese manufacturing. As Chinese companies drive productivity innovation through dark factories, some experts say they are presenting a new paradigm for manufacturing in the age of artificial intelligence (AI). However, there are also concerns that the deepening of automation will exacerbate social side effects, such as job losses.

Chinese Companies Building Dark Factories... All-Out Integration of AI, Robotics, and IoT Technologies

Production line inside the dark factory built by Xiaomi. In the darkness with the lights off, a multi-joint robot recognizes its surroundings through advanced sensors and assembles smartphone components instead of humans. Xiaomi YouTube

Last year, Chinese smartphone manufacturer Xiaomi opened a next-generation smartphone manufacturing plant in Changping, Beijing. The investment amounted to approximately 500 billion KRW, and the plant has an annual production capacity of 10 million smartphones. At this plant, which manufactures Xiaomi's flagship smartphones, intelligent robots handle most operations around the clock, producing one finished device every second. Xiaomi has automated every process, from printed circuit board (PCB) assembly and component inspection to final testing, through its self-developed smart control system.

This unmanned, automated factory built by Xiaomi is the so-called 'dark factory.' Since machines handle all operations throughout the day without human intervention, there is no need for lighting inside, hence the term 'dark factory.'

Although other Chinese companies have not yet achieved the level of complete automation seen at Xiaomi, they are also implementing automation technologies comparable to dark factories. At the Xi'an plant of BYD, China's largest electric vehicle manufacturer, 97% of production processes?including welding, painting, and battery pack assembly?have been automated using robotic handling systems and automated guided vehicles (AGVs). In addition, in April, telecommunications equipment manufacturer Huawei unveiled its smart manufacturing technologies based on AI, cloud, and next-generation wireless technology at the Hannover Messe in Germany, emphasizing that "the potential of intelligent factories is enormous."

China's dark factories are realized through the convergence of various advanced technologies. Most tasks previously performed by humans?such as assembly, inspection, and logistics?are now handled by automated equipment, including multi-joint robots. AI, which serves as the 'brain' of the factory, monitors manufacturing processes in real time and makes decisions, flexibly adjusting operations without human intervention even when unexpected situations arise. By repeating these processes, machine learning algorithms are refined to identify inefficiencies and optimize production.

Furthermore, Internet of Things (IoT) technology enables real-time communication and information sharing between equipment, allowing every task on the production line to be organically connected. In particular, technologies such as computer vision and LiDAR detect most physical stimuli in dark factories. This is why robots are able to repeatedly perform precise tasks even in environments with no light at all.

Because dark factories operate 24 hours a day, they far surpass traditional factories in terms of work speed and production capacity. There is no need for rest areas, cafeterias, or medical facilities for resident personnel, which also reduces costs. Robots do not experience fatigue, make mistakes, or have emotional fluctuations, so consistency and reliability in quality control are improved.

Additionally, because dark factories maintain a sealed system with no external intervention, they are highly useful in high-value-added industries where precision is critical, such as electronics and pharmaceuticals, where contaminants could affect products.

Energy consumption is also reduced compared to conventional manufacturing facilities, since there is no need for lighting, heating, cooling, or ventilation for people. Only the minimum environment required to ensure the stable operation of the 'machine system'?consisting of robots, sensors, and servers?needs to be maintained, which also leads to a reduction in greenhouse gas emissions.

The Light and Shadow of Industrial Automation... Robots Work While People Lose Jobs

Chinese President Xi Jinping visited the Luoyang Bearing Group factory in Henan Province, China, on the 19th of last month (local time), inspecting the manufacturing equipment and interacting with employees. Photo by Xinhua News Agency

Although China is driving innovation in manufacturing paradigms through the construction of dark factories, some warn that employment is rapidly declining and social polarization is intensifying. In particular, as automation becomes more widespread, vulnerable groups who have depended on existing industrial structures are expected to be hit the hardest.

Experts predict that, since China has the highest proportion of low-educated workers among upper-middle-income countries, low-skilled workers and rural laborers engaged in low-value-added product manufacturing will lose their jobs. Professor Dorien Emmers of KU Leuven in Belgium stated, "China's industrial upgrading and large-scale automation have reduced labor demand, leading to falling and stagnant wages for low-skilled workers," and warned, "Ultimately, serious social problems such as unemployment and crime could arise due to shrinking consumption and slowing growth."

In fact, these issues are materializing as conflicts in the workplace. According to Hong Kong-based NGO China Labour Bulletin, there were more than 450 manufacturing-related protests in China last year, the highest number in the past decade. The organization analyzed that 'technological unemployment' is increasing as machines and robots replace human labor in China, and that labor protests have surged especially in the electronics industry.

Since the Chinese government has made fostering advanced manufacturing a national strategy and has led this effort, attention is focused on how it will address the resulting social and economic side effects. The Financial Times (UK) noted, "Chinese President Xi Jinping has made advanced manufacturing the core of his economic strategy," but added, "Many believe that the employment-generating effect of industrial automation is limited." The report continued, "Rising unemployment could exacerbate the economic slowdown and put new pressure on policymakers who have become accustomed to rapid growth," and concluded, "It is uncertain how China, under its one-party rule, will resolve these issues."