Siemens is testing AI tools at its Erlangen factory, where a senior executive said automation could reach 70% to 80%, Reuters and dpa-AFX reported, amid pressure on manufacturers to improve productivity.
Siemens Managing Board member and Digital Industries President Cedrik Neike put current factory automation at 30% to 40% during an Oct. 19 event. He presented higher productivity as a way to keep manufacturing viable in high-wage countries such as Germany, the two outlets reported. His estimate was separate from Siemens’ announcement about the work underway at Erlangen.
Siemens said it is testing AI and digital twins with NVIDIA during live production. For new printed circuit board assemblies, the company projects that preparing production virtually could require up to 85% less engineering effort and shorten time to market by up to 40%. Those figures describe potential gains for that process. Siemens also said software agents that propose production plans and check them against a digital twin could enable cost savings of up to 20%.
The company counts more than 100 AI algorithms in use at Erlangen, including in logistics, inspection and maintenance. It says the factory’s productivity rises 7% annually. Separately, Reuters reported Neike’s view that manufacturers need annual productivity gains of 7% to 9% to remain competitive. Siemens says waiting for physical prototypes has slowed preparations for quality inspection, a bottleneck its digital process is designed to address.
Siemens says the factory opened in 1971, employs about 1,000 people and makes power electronics and automation equipment for industry and infrastructure. The factory is part of a €500 million transformation of the wider Erlangen location that Siemens announced in September 2025. The company has not assigned that full amount to the factory or its AI systems.
Siemens plans to add AI applications in the coming months. Its site plan calls for a logistics, services and flexible automation center by 2027, followed by a power electronics development hub and more manufacturing space by 2030.
