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Home » Shanghai Targets $7B+ Embodied Intelligence Sector by 2027

Shanghai Targets $7B+ Embodied Intelligence Sector by 2027

Rukhsar Rehman byRukhsar Rehman
August 7, 2025
inNews
Reading Time: 2 mins read
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Shanghai Targets $7B+ Embodied Intelligence Sector by 2027
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Shanghai has announced a comprehensive set of industrial development objectives and economic support measures aimed at expanding its embodied intelligence industry to over 50 billion yuan (approximately $7 billion) by 2027.

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By that year, the city aims to host at least 100 key industrial companies, implement 100 innovative application scenarios, achieve mass production of 100 globally leading products, and make no fewer than 20 breakthroughs in core algorithms and technologies related to embodied models and corpora. Additionally, a minimum of four high-quality embodied intelligence industrial incubators will be established within the city.

Embodied intelligence blends artificial intelligence with physical entities like robots, endowing them with human-like perception, learning, and interaction capabilities. This approach enables AI systems to understand causality and develop general knowledge through interactions between physical bodies and their environments.

Supports will include funding for critical research projects in perceptual decision-making, motion control, embodied corpora, operating systems, and other areas. Universities and research institutions will receive backing to develop integrated large-scale embodied intelligence models, with the government covering up to 30% of approved project investments, capped at 50 million yuan.

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The city aims to develop a complete supply chain for the embodied intelligence sector and attract several high-quality firms to establish operations locally. It will also promote the development of the industry ecosystem by encouraging the creation of five major public service platforms covering computing power, digital twin training, pilot testing, investments, and leasing. Efforts will focus on establishing open-source systems, standards, regulations, and nurturing talent, offering to subsidize up to half of the project investments with a maximum of 20 million yuan.

Application scenarios remain a crucial element of the plan, emphasizing the practical deployment of embodied intelligence across various sectors such as logistics, manufacturing, retail, healthcare, elder care, and domestic services. The city will contribute up to 20% of the funding for innovative demonstration projects, with a maximum of 10 million yuan.

The Pudong New Area, a prominent hub for China’s embodied intelligence industry, already hosts over 70 robotics companies, including notable names like Zhiyuan, Fourier, and Kepler Robot.

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Rukhsar Rehman

Rukhsar Rehman

A University of California alumna with a background in mass communication, she now resides in Singapore and covers tech with a global perspective.

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