Six key government departments, including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission, the State Administration for Market Regulation, and the National Data Administration, have jointly issued a notice to launch a smart factory gradient cultivation initiative for the 2026 fiscal year.
The notice clarifies four tiers of smart factories. Basic-level smart factories focus on digital transformation. Advanced-level smart factories aim to enhance digital and networking capabilities, and construction should follow the requirements outlined in the "Smart Factory Gradient Cultivation Factor Conditions (2026 Edition)" and reference the "Smart Manufacturing Typical Scenario Reference Guide (2025 Edition)." Excellent-level smart factories are to implement intelligent upgrades, creating nationally leading benchmarks, and must meet the "Factor Conditions." Pioneer-level smart factories will explore future manufacturing models, leading intelligent transformation and creating globally leading benchmarks, also adhering to the "Factor Conditions."
The initiative is designed to promote the digital and intelligent transformation of the manufacturing industry and accelerate the development of a new generation of intelligent manufacturing. It follows the "Smart Factory Gradient Cultivation Management Measures (Interim) (Ministry of Industry and Information Technology Lian Zhuang [2025] No. 262)."
Advanced-level Smart Factory Cultivation
For advanced-level smart factories, provincial industrial and information technology authorities, along with relevant departments, will oversee regional identification and cultivation. Central enterprises will manage the identification and cultivation of their own advanced-level factories. Lists of these factories must be submitted to the Ministry of Industry and Information Technology, with central enterprises also reporting to the State-owned Assets Supervision and Administration Commission.
Excellent-level Smart Factory Cultivation
Excellent-level smart factories are to implement intelligent upgrades and become nationally leading benchmarks. Applicants must be registered in China as independent legal entities, have already been recognized as an advanced-level smart factory, and have begun exploring new technologies like artificial intelligence. They must also cooperate with on-site inspections, technology promotion, and case study exchanges. Applications must be submitted online by August 15, 2026.
Provincial industrial and information technology authorities, in conjunction with other departments, will organize project recommendations. The top 10 provinces by industrial added value in 2025 can recommend up to 40 projects, provinces ranked 11th to 20th can recommend up to 30, and other provinces can recommend up to 20. Xinjiang Production and Construction Corps and relevant central enterprises can recommend up to 5 projects. Recommended units must complete online review by September 1, 2026, and submit paper documents to the Ministry of Industry and Information Technology.
Pioneer-level Smart Factory Cultivation
Pioneer-level smart factories will explore future manufacturing models and become globally leading benchmarks. Applicants must be industry leaders with globally competitive core products and sufficient resources. They must have already been recognized as an excellent-level smart factory and have broadly applied technologies like artificial intelligence. Applications must be submitted online by August 15, 2026.
Provincial industrial and information technology authorities will organize project recommendations. Each province can recommend up to 10% of its total number of excellent-level smart factories. Recommended units must complete online review by September 1, 2026, and submit paper documents. The Ministry of Industry and Information Technology will organize expert reviews, on-site inspections, and interviews to form a cultivation list.
Other Matters
All relevant departments and central enterprises are to strengthen tiered guidance and supervision of smart factories, treating them as key vehicles for developing new-generation intelligent manufacturing. They should support smart factory construction and industrial intelligent system development to promote high-end, intelligent, and green manufacturing. On-site inspections of recommended excellent and pioneer-level projects should be enhanced to improve project quality. All project applications, reviews, management, and evaluations will be conducted through the Smart Manufacturing Data Resource Public Service Platform.