Alibaba launches digital manufacturing factory for SMEs

Chinese tech giant Alibaba Group revealed its new manufacturing model, the Xunxi Digital Factory, yesterday (September 16). The factory is located in Hangzhou and is powered by cloud intelligence and Alibaba’s Internet of Things (IoT) technology.

The project aims to level the playing field for SMEs in the manufacturing industry as it offers them a digitalised end-to-end supply chain. The factory has already begun to produce clothes for brands on Taobao and Tmall.

Alibaba outlined its plans for the future in its “Five New” strategy – New Retail, New Manufacturing, New Finance, New Technology and New Energy – which was first introduced by founder Jack Ma in 2016. The launch of this initiative is a milestone in the implementation of New Manufacturing.

Alibaba has been heavily investing in AI and IOT and is leading the way in blockchain development. Alibaba Cloud also recently announced that it will use AI to improve Beijing’s traffic congestion.


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