Shanghai's business-friendly policies attract global titans betting on AI wave

Multinational corporations are speeding up AI integration into their business operations to capitalize on the AI wave in China. Shanghai’s strategic objectives, along with a favorable economic climate, have enticed major global firms to invest and operate in the region.

Firms including Rockwell Automation, Merck Electronics and ABB share visions regarding the AI wave, digital transformation, and their development and investment in China. They have accelerated digital transformation to enhance business efficiency, optimize the supply chain, and contribute to the country’s high-quality development in a more intelligent and sustainable manner.

Eying huge AI potential

US-based Rockwell Automation, a global leader in industrial automation and digital transformation, is at the forefront of integrating AI into its solutions for sustainability and smart manufacturing, such as its Rockii Net-Zero. Additionally, the company is collaborating with industry giants like Nvidia and Microsoft to expand the application of AI in manufacturing processes.

AI is becoming the first choice for manufacturers to reach business outcomes, while 83 percent of manufacturers plan to use generative AI (GenAI) in their operations by 2024, Rockwell Automation said in its latest State of Smart Manufacturing Report.

China’s commitment to innovation-driven growth and the country’s supportive business environment further accelerate this trend.

The company entered Chinese markets in 1988 and has since then established a strong presence with China headquarters in Shanghai.

Now Rockwell Automation China has 28 sales offices, a software development center in Dalian, OEM application development centers in Shenzhen, Shanghai and Tianjin, an engineering center in Xi’an, and two manufacturing sites with more than 2,000 employees.

It has cooperated with Shanghai’s Caohejing High-Tech Park, where its Chinese headquarters is located, to build a manufacturing innovation center. The center focuses on incubating science innovation, promoting green development, and systematically upgrading the neighborhood supply chain.

Ian Shih, president of Rockwell Automation China, praised Shanghai for its high-level opening, favorable business environment, and booming business opportunities. The Caohejing park is constantly helping Rockwell Automation root and operate locally, find partners and opportunities, and boost China’s sustainable and high-quality development, he said.

“Within the new development paradigm of dual circulation — both domestic and international — reinforcing each other, we firmly believe that China’s continued expansion of high-standard opening-up will continually stimulate innovation potential, creating broader market opportunities for foreign enterprises operating in China and contributing new strength to global economic prosperity and development,” Shih said.

'Material intelligence' strategy

German-based Merck Electronics is accelerating its investment in Shanghai and China to support the development of semiconductor and display industries.

With a strong presence in China, Merck Electronics offers a wide range of high-tech material solutions for chip manufacturing, display technology, and autonomous driving, the company said in an interview during the 7th CIIE.

In the AI boom, chips and screens are key components of smart devices. The company’s “Materials Intelligence” approach leverages chemistry, physics, and material science to empower the development of cutting-edge technologies, said Sui Yu, managing director of Merck Electronics China.

Merck Electronics has established four manufacturing sites in China, with two in Shanghai, and one each in Suzhou and Zhangjiagang, Jiangsu Province. The company’s Electronics Technology Center China (ETCC) was founded in Shanghai in 2022.

Over the past two to three years, many new wafer lines have started operation, with a continuously growing capacity. Geographic proximity aligns Merck Electronics’ material capacities with the growth of local customers, according to Sui. In China, Merck offers more than 150 products to around 100 chipmakers across the country, covering their entire wafer fabrication and packaging processes.

Shanghai, with its favorable business environment and abundant talent pool, has emerged as a key hub for its operations.

“Shanghai’s business environment is very attractive and friendly to foreign companies, with an efficient government and a rich pool of high-level talent. That’s why we are continuously investing here,” Sui said.

The company announced in 2022 that it planned to invest an additional 1 billion yuan (US$138 million) in China by 2025, with Shanghai a key focus.

AI and robot integration

Robots have become ubiquitous in the age of AI, and Shanghai has emerged as a global hub for robotics development and innovation. Major international events like CIIE and the China International Industry Fair (CIIF) have showcased the latest advancements in robotics technology, with numerous global and domestic brands unveiling their cutting-edge products.

Among the industry giants, ABB, Fanuc, KUKA, and Yaskawa, have been at the forefront, introducing new robotic solutions tailored to the Chinese market.

Swiss-based ABB launched the GoFa cobot family recently, highlighting enhanced precision in applications requiring highly accurate path performance.

Marc Segura, president of ABB Robotics Division, emphasized the transformative power of AI in driving robotics development. By integrating AI, robots are becoming more intelligent and versatile, capable of performing complex tasks with greater efficiency and accuracy.

Shanghai’s commitment to robotics innovation is evident in its strategic initiatives. The recent establishment of a new robotic fund in Baoshan District aims to further strengthen the city’s robotics ecosystem and attract global talent and investment. With over 240 robotics firms, including Fanuc and Yaskawa facilities, already operating in the district, Baoshan is well-positioned to become a global leader in robotics.

During his visit to the city, ABB Chairman Peter Voser proposed that Shanghai strengthen its position in AI by fostering interdisciplinary research and broadening its application in more diversified scenarios.