No lights, no workers: AI-powered 'dark factories' are reshaping China's manufacturing

In 2024, Chinese tech firm Xiaomi launched an 81,000-square-meter facility, about the size of 11 football fields, that operates 24/7 without any human presence. The plant, which cost 2.4 billion yuan (US$330 million), has the capacity to produce 10 million smartphones annually.

The factory is part of Xiaomi's HyperIMP smart manufacturing platform, which uses an AI-driven ecosystem that allows machines to think, adapt and optimize independently. Xiaomi CEO and founder Lei Jun said in a video clip shared on social media: "There are 11 production lines. 100% of the key processes are automated. We developed our entire production and manufacturing software to achieve this."

Xiaomi also has a 720,000-square-meter electric vehicle factory in the Beijing Economic-Technological Development Area, also known as Beijing E-Town. The facility, built in 2023, produces the SU7 electric sedan. A new vehicle rolls off the production line every 76 seconds with over 700 robots operating around the clock, according to China Daily. Robotic arms perform high-precision tasks with few workers in sight.

Assembling machines in a factory. Photo from Pexels

What dark factories offer

A "dark factory," or "lights-out factory," refers to a facility that runs with little to no human presence and can function in total darkness. German tech company Siemens defines it as one that requires no on-site personnel.

The model is not new: Japanese robotics firm Fanuc Ltd launched its first fully automated line in 2001. By 2003 its Mt. Fuji facility ran unsupervised for up to a month, with robots building around 50 other robots a day, CNN Money reported.

"But Xiaomi may have taken things up a notch, by allowing the AI brain of the factory to autonomously develop and optimize its processes over time," tech site New Atlas noted. "What's most impressive," Lei Jun was quoted as saying, "is that this platform can identify and solve issues, while also helping to improve the production process."

HyperIMP enables real-time monitoring by transmitting operational data to servers where AI can predict and resolve anomalies. The system can correct sensor errors and teach robots to function more like engineers than mechanical tools. By removing human-centric infrastructure such as lighting, ventilation, cafeterias, and break rooms, dark factories can reduce costs and improve precision.

According to the International Energy Agency, eliminating these systems can cut energy consumption by 15–20%. AI-driven quality control in dark factories also outperforms human inspectors in consistency and accuracy.

A decade in the making

Once viable only for small-scale operations, dark factories have become practical for large-scale manufacturing due to advances in AI and automation, sectors that have seen major investment in China. A key turning point was the 2015 launch of the "Made in China 2025" initiative which prioritized robotics, AI and smart production.

The strategy has yielded measurable results. According to the International Federation of Robotics, China installed 290,367 industrial robots in 2022, accounting for 52% of the global total. Their number rose from 392 units per 10,000 manufacturing workers in 2022 to 470 in 2024 to rank third globally after South Korea and Singapore.

Advanced sensor technologies such as computer vision, infrared detection and LIDAR give machines the ability to perceive their surroundings and carry out precision tasks without light. Meanwhile, AI software customized for automation serves as the factory's operational brain.

According to Dubai-based news platform Foreign Affairs Forum (FAF), many Chinese companies are now using machine learning to detect inefficiencies and enhance production. Internet of Things systems also allow machines to communicate and share data across production lines in real time.

Several Chinese companies have already integrated the dark factory model into their operations with notable results. Automation solutions firm Changying Precision Technology Company has replaced 90% of its workforce with automated systems, according to China Daily newspaper. In Zhejiang Province, AI startup MEGVII Technology operates a smart dark workshop that produces engines 24/7.

In Zhuhai City in southern China, home appliance maker Gree Electric Appliances partnered with telecom operator China Unicom and Huawei to upgrade its Gaolan plant into what Mobile World Live described as "the largest 5.5G native lights-out factory in the world," increasing production efficiency by 86%.

Labor challenges and future outlook

While dark factories reduce costs and increase productivity, they also raise concerns over large-scale displacement of manufacturing jobs.

Worker anxiety about automation is already evident in China’s manufacturing sector. A 2023 strike in Guangdong, reported by China Labour Bulletin, highlighted employee fears about being replaced by robotic systems. China's broader economic landscape showed signs of stress as manufacturing evolves. Reports indicated that many migrant workers are leaving coastal manufacturing centers and returning to their hometowns due to reduced employment opportunities.

Dubai's FAF warned that many workers could be left behind without significant retraining efforts. Transitioning the workforce would require investment in education programs focused on AI, robotics maintenance and data science, it said.

Technical challenges remain as well, like cybersecurity risks, system reliability and the need for more advanced AI decision-making, it warned.