Siemens and Nvidia Develop AI-Driven Factory Automation Technology

By Michael Hennessey

Siemens and chip company Nvidia have developed an artificial intelligence-driven, autonomous manufacturing technology, which could cut planning costs by up to 20%.

Siemens on Monday unveiled AI solutions at its electronics factory in Erlangen, Germany, which have been developed after the partnership was first outlined in January. The solutions combine AI and virtual replicas of factory systems to accelerate production ramp-up and improve planning.

Siemens said a fully virtual production ramp-up--which allows a manufacturing line to be tested and optimized digitally--cuts engineering effort for new printed circuit board assemblies by up to 85%, and reduces time-to-market by up to 40%. AI agent-based production planning allows cost savings of up to 20% by adapting schedules to shortages and demand changes.

"The historic opportunity for Germany and Europe lies in bringing artificial intelligence out of the data centers and into the factories - and applying it on an industrial scale," said Cedrik Neike, a member of Siemens' managing board.

Siemens said further applications for the technology are planned in the coming months.

The announcement comes as an investment summit between Nvidia, the German government and German business leaders gets underway in Berlin. A partnership to promote AI in German industry will be announced, the German government said.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

October 19, 2026 08:58 ET (12:58 GMT)