Taicang's Bold Vision for Industrial Transformation

Deep News
Aug 14

A two-yuan bus ride on Route 103 in Taicang offers a surprising view: instead of shops and residential blocks, passengers see a lineup of renowned German enterprises like Kern-Liebers, Trumpf, and Schaeffler. This single bus route connects a unique "mobile industrial chain," where one trip can gather the core components for an electric vehicle drivetrain. This vibrant manufacturing foundation embodies the city's enduring ambition for industrial excellence.

During the Spring and Autumn period, the King of Wu built granaries on the south bank of the Yangtze River's estuary, giving Taicang its name. In the Yuan Dynasty, it was known as the "Port of Six Nations," and Zheng He set sail from Liuhe Port. This legacy of openness and enterprise has been passed down through generations. Over a millennium, the former imperial granary has transformed into the nation-famous "Home of German Enterprises." More than 560 German companies have established roots here, generating an annual industrial output value exceeding 67 billion yuan. Three major industrial clusters—automotive core components, industrial mother machines, and aerospace—are rapidly taking shape.

As global industrial chains undergo accelerated restructuring and regional competition intensifies, how does Taicang plan to break through these new challenges? The recently concluded 15th Taicang Municipal Party Congress provided a clear answer: achieve breakthroughs in building a modern industrial system, synergistically promote the upgrade of traditional industries, nurture emerging industries, and strategically position future industries to play a greater role in Suzhou's construction of a national new industrialization demonstration zone. Leveraging its millennium-old foundation along the river and a solid industrial base, this riverside city is forging a new path by balancing transformation and innovation, accumulating powerful momentum for industrial upgrading and optimization.

Factories Gain a "Smart Brain"

As the "Fuxing" high-speed train races across China, the critical control modules for its traction and braking systems originate from the Taicang-based German company Zollner Elektronik. Inside Zollner's Phase II SMT workshop, automated production lines, industrial robots, and intelligent inspection equipment operate in seamless coordination. A high-precision printed electronic assembly is produced every five seconds, and over 50,000 components are quickly stored and retrieved using intelligent warehousing, with raw materials precisely located within 15 seconds. "Zollner specializes in high-mix, low-volume production, processing more than 400 different production orders daily," explained Plant Manager Tian Jun. Through digital and intelligent transformation, the time to switch production lines between products has been cut from 30 minutes to 15 minutes, significantly boosting equipment utilization, production efficiency, and product yield.

The transformation of one enterprise mirrors the city's broader industrial upgrade path. Traditional industries form the bedrock of manufacturing and are the main battlefield for improving quality in new industrialization. In recent years, Taicang has continuously pushed for the transformation of traditional manufacturing towards high-end, intelligent, and green development, shifting industrial growth from "labor-driven" to "intelligence-empowered." In the Lingang High-end Equipment Industrial Park, global turbocharger leader BorgWarner Technologies is deepening its transformation. It has expanded from its traditional focus on turbochargers to a dual-drive model of "turbocharging + electric compressors," and with the acquisition of the global aftermarket brand Merit, it now operates a "three-horse chariot" business matrix to seize opportunities in the new energy vehicle sector. "The intelligent upgrade of our production lines completed last year at the Taicang base is already showing results," said Zhu Qinhua, Operations General Manager of BorgWarner China. The company has fully deployed vision inspection robots, AGV intelligent logistics systems, and digital data analysis tools, continuously optimizing production processes and strongly supporting order growth.

Beyond individual breakthroughs, Taicang is deeply advancing the digital, intelligent, and networked transformation of its manufacturing sector, building a comprehensive promotion system covering "diagnosis—transformation—application—service" and continuously deepening its green manufacturing system. Currently, Taicang boasts two global "Lighthouse Factories," six national-level 5G factories, two national-level green industrial parks, and three 10G optical network pilot projects that have passed the Ministry of Industry and Information Technology's acceptance. The digital and green foundation of its manufacturing industry is becoming increasingly solid. Leveraging its strong industrial advantages, Taicang is continuously extending and upgrading its leading industries, such as automotive core components and industrial mother machines. It is accelerating the construction of the Suzhou Industrial Mother Machine Comprehensive Innovation Center, striving to become a source of innovation and a hub for transforming achievements in this field within the Yangtze River Delta region.

As the renowned "Home of German Enterprises," over 30 years of cooperation with Germany has instilled in Taicang the advanced genes of precision manufacturing and Industry 4.0. Advanced German companies like Oechsler, Schaeffler, Trumpf, and Tox have moved beyond their factory gates to provide smart manufacturing solutions to over 200 local enterprises. Technological innovation is the core driver of industrial upgrading. Taicang is continuously improving its comprehensive innovation system, nurturing and growing a high-quality enterprise echelon. By 2025, Taicang is projected to have 1,421 high-tech enterprises and 1,809 tech-based small and medium-sized enterprises, with the output value of high-tech industries accounting for 56.8% of the total output value of industrial enterprises above designated size, ranking first among county-level cities in Suzhou. Furthermore, Taicang has established a full-chain science and innovation platform spanning "incubators—accelerators—industrial parks," operating 69 incubation platforms at various levels and 11 cooperative research institutions. Leveraging quality platforms like the national-level biomedical incubator and Taicang Zhihui Valley, it continuously attracts high-quality scientific innovation resources from companies like BOE and Ant Digital, steadily transforming scientific potential into industrial momentum and building strong momentum for high-quality development in new industrialization.

New Tracks Ignite Growth Sparks

Optimizing the industrial structure involves not only improving the "old" but also increasing the "new." Top-level design is driving a continuous leap in the level of industrial clusters. Taicang's "3+3" industrial system is showing significant results. High-end equipment and advanced materials have both joined the ranks of hundred-billion-yuan industries, while the annual revenue of material trade enterprises above designated size has surpassed 200 billion yuan. Three characteristic industries—aerospace, healthcare, and cultural tourism and commerce—are accelerating their clustering, becoming important pillars for stable economic growth. Since the start of the "14th Five-Year Plan," the proportion of output value from strategic emerging industries in Taicang's total industrial output value above designated size has risen to 45.3%.

New materials are a key track for industrial breakthroughs, with several local tech startups achieving successive technological breakthroughs. In the summer heat of Taicheng Town, the Benergy Technology company operates with rows of precision instruments running efficiently, producing sodium-ion battery cells on its production line. "This is a polyanionic sodium-ion cell, which solves the 'thermal runaway' problem inherent in lithium batteries," explained Li Kun, General Manager of Benergy Zhongke Sainuo. "Despite its small size, this cell easily achieves a cycle life of over 100,000 times and can safely serve high-density environments like data centers and industrial parks." As a potential unicorn and gazelle high-tech enterprise in the sodium-ion battery field within the province, Benergy has filed over 200 patent applications in China, the United States, Australia, and other countries, successfully exporting its products to Southeast Asia. The company is also collaborating with partners in Europe and the Middle East to develop the energy storage track through technology export and localized supporting.

Shifting the focus to the banks of the Yangtze River, Zhongke Shixian New Material Technology (Jiangsu) Co., Ltd. is performing a "turning stone into gold" trick, smelting basalt rock into high-performance fibers and commencing trial production. This material can withstand temperatures up to 850°C and boasts strength far exceeding traditional steel rebar. It has already been applied in projects like Shanghai's elevated roads and river-crossing tunnels. The company began trial production and delivery just three months after its establishment, and it expects its revenue to exceed 100 million yuan within two to three years. Meanwhile, at the Yangtze River Delta Advanced Materials Innovation Center in Taicang Port, delegations from afar are negotiating potential cooperation intentions, with new collaborative stories brewing in the standardized factories. As a one-stop service platform for attracting technology services, the Yangtze River Delta Advanced Materials Innovation Center has attracted over 20 new material companies in frontier fields like new energy, semiconductors, and biomedical applications. It has cultivated over 10 Taicang leading and Gusu leading talent enterprises, initially forming a science and technology innovation ecosystem.

The robust growth of emerging industries is not a solo performance. Anchored in the direction of new industrialization, Taicang, driven by new quality productive forces, promotes the deep integration of technological and industrial innovation, accelerating the construction of a diversified, synergistic, and tiered industrial development pattern. The Yangtze River Delta is a concentrated hub for large aircraft industry clusters. Taicang strengthens cooperation with leading enterprises like COMAC, actively absorbing the spillover effects of Shanghai's large aircraft industry. The number of aerospace enterprises in Taicang has exceeded 200, covering sub-sectors such as aerospace component manufacturing, aviation materials R&D, and drone production, forming a relatively complete industrial chain prototype and showing initial signs of synergistic development.

The cosmetics industry is also rapidly emerging as a new industrial landmark for Taicang. Centered around Taicang Port, the Jiangsu "Cosmetics Harbor" has formed a clustered, full-chain, and international development pattern. Global daily chemical giants like P&G, Reckitt Benckiser, and Henkel have established their sole Asian or Chinese production bases in the port area, creating a "three-horse chariot" driving effect. From raw material R&D, packaging material manufacturing, inspection and testing to logistics distribution, the industry achieves efficient synergy through a "one-hour supply chain." Biomedicine has nearly 20 years of development history in Taicang. Taicang is improving its "one core, two wings" healthcare layout, with the Biomedical Industrial Park as the core and the Bioport and Sino-German Life Science Park as the wings, aiming to build the "Taicang Medicine Valley" with regional influence and industry recognition. The development of new industries relies on project support. Since the start of this year, projects like the Xintai New Energy Technology project, which will establish a full-chain manufacturing headquarters base for new energy vehicle body and structural parts, and the Aerospace Kate Joint Module R&D and Manufacturing Base project, expected to achieve an annual output value of over 200 million yuan, have been signed and settled. Another project, Xunguang Intelligent Manufacturing New Material Technology, leverages 3D flow channel cleaning technology to target the aerospace and precision medical fields. Taicang is further expanding the map of its emerging industries.

The "X" Variable Unlocks the Future Landscape

Advancing industries towards new and optimized states requires new strategies. Taicang's approach to solving this problem is distinctive: promoting "AI + Manufacturing." Looking towards the "15th Five-Year Plan," Taicang is playing a clear card: adding an "X" to its existing three leading industries and three characteristic industries. This "X" will focus on future industries like embodied intelligence and commercial aerospace, constructing a new "3+3+X" modern industrial landscape. By taking "AI + Manufacturing" as the main lever for transformation and upgrading, Taicang aims to accelerate the leap from "Taicang Manufacturing" to "Taicang Smart Manufacturing" and "Taicang Creation."

On the factory floor, the transformation is vividly evident. At Tongwei Electronics' workshop, a full-area data screen displays real-time production parameters, and over 30 production lines operate with full-process intelligent functions. Relying on an AI-driven industrial internet platform, the company has built a collaborative system integrating "production—testing—business," achieving a 16% reduction in product cost and a 44% decrease in defect rate. "We have deployed over 40 AI-enabled scenarios, iterating our production model through numerous 'small yet beautiful' intelligent pilot projects," said Yu Hui, the company's IT director. The "foundation" for smart manufacturing is already laid, and the company plans to continuously improve full-area data collection, expand the boundaries of AI applications, and create a "smart park."

The smart manufacturing transformation at Sundiro Honda is equally impressive. In its workshop, AGV carts, overhead conveyor chains, and robotic arms work in efficient coordination, making automated production the norm. To address the challenge of manually verifying hard-to-see screws in the rear wheel assembly, the company deployed an AI visual error-proofing system that monitors and identifies issues with precision. "Production efficiency has been greatly improved; this smart 'eye' is sharper than a hawk's!" Zhao Lei, the company's Chief Deputy General Manager, admitted that AI technology effectively compensates for human shortcomings, making precision manufacturing more refined and reliable.

Behind the willingness and ability of enterprises to undergo transformation is Taicang's comprehensive and systematic support. Policy support breaks down barriers. Addressing common pain points like weak digital foundations, unclear smart transformation paths, and high technological upgrade costs, Taicang has precisely introduced the "Taicang City 'AI + Manufacturing' Diagnosis Implementation Plan (2026-2027)". With the goal of full coverage within two years, the city will provide free AI transformation diagnostics for enterprises above designated size, clarifying the transformation baseline and identifying upgrade pathways.

Scenario-based empowerment enhances efficiency. Taicang adheres to a model of benchmarking and leading by example, regularly collecting, cultivating, and promoting typical "AI + Manufacturing" application scenarios, turning isolated explorations into replicable and scalable mature models. Through the demonstration effect of leading enterprises, advanced smart manufacturing experience moves beyond the factory floor to benefit the entire region, making intelligent transformation a "common practice" rather than an "individual exploration," effectively converting diagnostic results into new quality productive forces. Ecosystem empowerment gathers vitality. Taicang continuously unblocks the full-chain innovation pathway from R&D and incubation to mass production, strengthens the financial support system covering the entire lifecycle of enterprises, and cultivates an industrial environment that encourages innovation and tolerates failure. With a market-oriented, law-based, and internationalized business environment, it attracts high-end elements like talent, technology, and data, creating a "tropical rainforest-like" innovation ecosystem that allows various business entities to confidently transform and focus on innovation.

In mathematics, X symbolizes an unknown variable, holding infinite possibilities. Looking at the smart manufacturing landscape of Loudong, the "X" dedicated to future industries represents the boundless exploration of technological innovation, and it embodies Taicang's beating ambition for new industrialization—to always seek solutions and always move forward. Anchored in the grand coordinate system of new industrialization, Taicang empowers industry with AI, defines the future with innovation, and continuously activates new potential for industrial iteration, unlocking new dimensions of high-quality development.

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