Chinese tech firm Xiaomi launched its first smart home appliance factory in Wuhan, central China's Hubei Province, on October 28, marking a major expansion of the tech giant's manufacturing footprint beyond smartphones and vehicles.

This new factory, focusing on air conditioner production, is the company's third large-scale smart factory after its auto and smartphone plants.

Spanning over 750 mu (50 hectares) in its first phase with a total planned investment of over 2.5 billion yuan (about $352.83 million), the facility integrates advanced technologies, including Digital Twin, AI visual inspection and aerial logistics systems. This enables comprehensive visualization and data-driven management across the entire production process.

The factory can roll out a high-end air conditioner every 6.5 seconds, according to Shan Lianyu, general manager of Xiaomi's home appliance department.

Peak annual production capacity for air conditioners is projected to reach 7 million units, with an estimated annual output value of 14 billion yuan, Shan said.

The factory's launch comes amid robust growth in China's smart home appliance sector. A recent industry report indicated that the market size of the country's smart home appliances reached about 756 billion yuan in 2024, a year-on-year increase of 3 percent, and is expected to hit 793.8 billion yuan this year.

Meanwhile, China's export of home appliances saw an increase of 14.8 percent year on year in 2024, reaching $128.64 billion, according to China Chamber of Commerce for Import and Export of Machinery and Electronic Products.