As the late summer heat of the Chushu solar term lingers, a journey through Suzhou reveals a city brimming with innovative vitality. A strategic cluster of optical communication enterprises shines brightly in the capital markets; a wave of innovative drugs is accelerating its global expansion, boosting the value of the biopharmaceutical sector; and a formidable "robot army" is making its mark on the world stage, showcasing the dynamism of the embodied intelligence industry. These advancements across multiple fronts paint a clear picture of Suzhou's industrial landscape: it possesses the depth of clustered strength and the courage for breakthrough innovation.
This past March, Suzhou was selected for the first national list of new-type industrialization demonstration zones, making it the only city in the province to receive this honor. From January to July this year, the total output value of Suzhou's industrial enterprises above designated size reached 2.92 trillion yuan, a year-on-year increase of 7.1%, while the value added by these enterprises grew by 9.4%. Suzhou is quickening its steps to build an internationally competitive "smart manufacturing hub."
Activating the "AI+" multiplier effect
Inside the world's first "Lighthouse Factory" for the optical communication industry, operated by Hengtong Optical Fiber and Cable, production equipment hums at high speed. With the explosive growth of the artificial intelligence sector, the company's orders are already booked through 2027. Suzhou has been a pioneer and deep investor in the smart manufacturing journey. It was the first in the province to achieve comprehensive coverage of digital, intelligent, and networked transformation for its industrial enterprises above designated size. To date, the city has built nine "Lighthouse Factories," 81 national-level 5G factories, ten national-level excellent intelligent factories, 180 provincial-level advanced intelligent factories, and 64 provincial-level industrial internet platforms, creating a multi-tiered, large-scale intelligent manufacturing ecosystem.
In response to the latest wave of technological change, Suzhou is actively embracing AI to drive the transition from old to new growth drivers and push the manufacturing sector towards greater intelligence and innovation. Early this year, Suzhou convened a conference on advancing new-type industrialization and the "AI+ Manufacturing" innovation drive, issuing the "Suzhou Action Plan for Advancing New-Type Industrialization by 2026" alongside eight major special initiatives, including enhancing industrial competitiveness and accelerating AI's empowerment of manufacturing. The starting gun has fired, and all districts are responding promptly. The Suzhou Industrial Park has implemented six major actions and 26 key tasks to foster deep integration of AI with manufacturing, enhancing efficiency; Kunshan is focusing on a "three-fold renovation" to strengthen factor supply and application scenarios; and Taicang is offering free AI transformation diagnostics for designated-size enterprises, aiming for full coverage within two years.
Companies are also stepping up their efforts. Inside a smart cockpit developed by AISpeech, a voice command triggers the air conditioning, seat ventilation, and music almost simultaneously. "Companies that can effectively use AI tools will take the lead," says Gao Xingshi, Chairman and CEO of AISpeech. The company is embedding AI into real-world applications across automotive, home, and industrial manufacturing sectors, having filed ten large models for registration and projecting a 50% revenue increase by 2026. Similarly, at Tongwei Electronics, over 30 production lines operate with full-process intelligent controls. "We have implemented over 40 AI-enabled scenarios, using 'small but beautiful' pilot projects to refine our production model," notes Yu Hui, the company's IT director. Leveraging an AI-driven industrial internet platform, the company has reduced product costs by 16% and lowered defect rates by 44%. This year alone, Suzhou has added 15 new AI application cases recognized by the Ministry of Industry and Information Technology. It was selected for the national first batch of "millisecond-level computing" pilot zones, and the first national-level high-quality dataset laboratory for the industrial manufacturing sector has been established here.
Forging a new green advantage for industry
At the Suzhou Inovance Technology plant, a smart energy management platform displays real-time data on water, electricity, and gas consumption. Inovance's green transition started from a "legacy plant dilemma," facing low photovoltaic power generation, substandard equipment energy efficiency, and fragmented energy management. "Many believe building a green factory requires massive renovation and high investment, but we see it differently," says Shen Lei, Director of the Digital Energy Zero-Carbon Product and Solution Center at Inovance. By leveraging digital technology as a core, the company has achieved both energy savings, carbon reduction, and improved operational efficiency through process optimization, technological upgrades, and lean management. This past March, the Suzhou factory was recognized as a national-level green factory. Green has long been a defining characteristic of manufacturing in Suzhou. During the "14th Five-Year Plan" period, energy consumption per unit of industrial value added above designated size decreased by a cumulative 23.1%, and the city has amassed 188 national-level green factories, 12 green industrial parks, and 588 provincial-level green factories.
At the Suzhou Industrial Park's circular economy industrial park, industrial sludge and municipal wastewater are collected and routed to various treatment units. The dried sludge is sent to a power plant for electricity generation, with the resulting steam fed back into the system; treated water goes to a sewage plant and is reused for cooling and cleaning. This coordinated operation transforms industrial waste into valuable resources. Data shows that Suzhou's comprehensive utilization rate of bulk industrial solid waste has reached 98.1%. Suzhou is continuously adjusting its industrial structure, focusing on both the greening of industry and the industrialization of green technologies, accelerating the shift between old and new growth drivers to enhance development quality with a higher "green content."
Recently, the Lingyun 25 hydrogen-powered drone, independently developed by Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd., completed a successful test flight. By deeply integrating hydrogen power with unmanned aerial vehicle technology, Guofu Hydrogen addresses the range limitations of lithium battery-powered models. According to Yuan Weifeng, Director of the Marketing Department for the UAV Center at Guofu Hydrogen, this hydrogen drone can achieve a flight time exceeding 120 minutes, four to five times longer than traditional battery-powered drones.
Playing the "two-sector integration" concerto
The "Suzhou Service Industry Expansion and Quality Enhancement Action Plan (2026-2030)", released this past June, sets an ambitious target of nearly 2 trillion yuan in total service industry output by 2030. The plan outlines support measures across nine key areas of producer services, including software and information services, AI services, and inspection, testing, and certification services. With a strong base of 160,000 industrial enterprises, including 14,700 above designated size, Suzhou is home to three trillion-yuan level industrial clusters in electronic information, equipment manufacturing, and new materials, as well as eleven 100-billion-yuan level clusters, and six national-level advanced manufacturing clusters.
This substantial manufacturing foundation provides rich scenarios for the growth of producer services in Suzhou; conversely, a flourishing producer services sector offers robust support for the manufacturing industry's expansion. In April, Suzhou was selected as a national pilot city for the integrated development of advanced manufacturing and modern services, particularly for a "metrology and inspection & testing" pilot. Inspection and testing services are a key lever for Suzhou to promote this integration. The city is upgrading its "one-stop" testing platforms for emerging industries like integrated circuits, biomedicine, and intelligent connected new energy vehicles, offering over 100 testing and inspection service items. Qin Ling, Deputy Manager of the Administration Department at Jiangsu Xinan Electric, stated that expanding and enhancing local testing services will help companies shorten product launch cycles and capture market share faster.
Beyond deploying producer services around advanced manufacturing, "two-sector integration" is also about transforming production-oriented manufacturers into service-oriented ones. Huguang Auto, a company that started with automotive wiring harnesses, has proactively expanded into embodied intelligence robotics, aiming to become a builder of the intelligent manufacturing and robotics ecosystem. Similarly, Kingclean Electric, leveraging its core high-speed motor technology, not only maintains its green smart home appliance business but also enters the automotive parts sector, establishing an "one body, two wings" strategic layout. Across Suzhou, companies are actively transforming to seize new opportunities. With government platforms and enterprise initiative working hand-in-hand, the path of "two-sector integration" is being paved with growing confidence and breadth.