Siemens and NVIDIA are transforming production processes using artificial intelligence and digital twin technologies at their facilities in Erlangen.
AI-generated summary
Siemens and NVIDIA announced that they would establish artificial intelligence-supported production facilities at the CES fair in January 2026. The Erlangen facility has been operating since 1971 and is a testing center for digital production technologies.
According to the statement made by the company, artificial intelligence and digital twins are used to accelerate production commissioning in autonomous applications and provide more adaptable production planning.
A NEW ERA IN AUTONOMOUS PRODUCTION FROM SIEMENS AND NVIDIA
The two companies, which announced that they would establish artificial intelligence-supported production facilities at the Consumer Electronics Fair (CES) held in Las Vegas in January 2026, have been jointly developing and testing applications during ongoing production at the Erlangen facility since then.
In Erlangen, which serves as a laboratory for industrial AI and a model for expanding capabilities across different sectors, Siemens and NVIDIA aim to transform the way products are designed, produced and delivered across the entire value chain by making AI the operating system of production. Different applications are planned to be implemented in the coming months.
By combining NVIDIA's artificial intelligence, simulation and accelerated computing technologies with Siemens' industrial software, automation and manufacturing expertise, the joint team developed their new solution in less than 10 months. Testing solutions directly in the production environment enabled teams to create systems that met real production requirements. New technologies are expected to provide improvements in areas such as production planning and product development.
ENGINEERING CAN REDUCE WORKLOAD BY 85 PERCENT
Virtual production preparation for new printed circuit board (PCB) assemblies, which form the basis of drives and frequency converters produced in Erlangen, can reduce engineering workload by up to 85 percent and time to market by up to 40 percent.
While teams have to wait for physical prototypes and manually configure control equipment to train image processing systems, which increases quality control preparation time, the new application solves this situation. Thanks to artificial intelligence producing "photorealistic" images from digital twins of PCB assemblies to train image processing systems, engineers can prepare for quality control before physical prototypes are ready.
ARTIFICIAL INTELLIGENCE AGENTS SUPPORT PRODUCTION PLANNING
In the production planning of the facility, new artificial intelligence technologies promise to establish the balance between capacity, material availability, delivery dates and production lines quickly and efficiently. While previously planners had to compare and evaluate various factors based on their experience to make the decision, an artificial intelligence agent in the factory now supports this process. When new orders arrive, various production scenarios are automatically created and the impact of each option is shown to the planners according to defined key performance indicators (KPIs).
COST SAVINGS OF UP TO 20 PERCENT IN PRODUCTION PLANNING
Recommendations are validated using a digital twin of the entire production facility before implementation. End-to-end production planning based on artificial intelligence agents enables cost savings of up to 20 percent while allowing manufacturing operations to respond flexibly to new orders, material shortages or changing customer requirements.
NVIDIA TECHNOLOGIES ARE INTEGRATED INTO PRODUCTION PROCESSES
The developments combine Siemens' industrial software and manufacturing expertise with NVIDIA technologies. NVIDIA Cosmos world models produce realistic training data for quality control. NVIDIA Factory Operations Blueprint supports artificial intelligence agents that create production plans and help factories respond to changing production needs, while NVIDIA Omniverse libraries enable teams to test these plans in a virtual environment using real factory data.
500 MILLION EUROS INVESTMENT IN ERLANGEN FACILITY
Founded in 1971, the Siemens Erlangen facility in southern Germany employs approximately 1,000 people and produces power electronics and automation technologies for industry and infrastructure, including machine tools, battery production, and the process and discrete manufacturing sectors.
For more than a decade, new digital production technologies have been tested, developed and implemented at the facility while production continues. More than 100 artificial intelligence algorithms are actively used in the facility in production, logistics, quality control and maintenance areas. The facility is planned to be expanded by 2030, with the company investing 500 million euros in the transformation.
7 PERCENT ANNUAL PRODUCTIVITY INCREASE IN ERLANGEN
Siemens AG Board Member and Head of Digital Industries Cedrik Neike, whose views were included in the statement, stated that the historical opportunity for Germany and Europe lies in taking artificial intelligence out of data centers and into factories and applying it on an industrial scale.
Stating that NVIDIA and Siemens have demonstrated how this can be done in their electronics factories in Erlangen, Neike said, "Erlangen is one of the most advanced production facilities in the world, with an annual productivity increase of 7 percent. At the same time, it is a global meeting point for industrial innovation with approximately 3 thousand customer visits every year. The future of the industry is not just talked about here, it is becoming reality today." he said.
NVIDIA Vice President of Physical Artificial Intelligence Simulation Rev Lebaredian also pointed out that factories should be able to adapt to change as well as carrying out repetitive work.
Emphasizing that artificial intelligence and simulation make this possible, Lebaredian said:
"In Erlangen, Siemens and NVIDIA are putting their years of collaboration into practice on the factory floor. They train control systems before physical prototypes exist, and design and test production plans in simulation before making changes in the real world. Together, we are creating a model for autonomous factories around the world."
AI outlook — possibilities, not facts
Expansion of the Erlangen plant until 2030.
Very likely · Within years
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