A planned city explores how real-time data and automation can shape everyday urban systems
Updated
April 13, 2026 3:26 PM
A package being delivered by drone using the Meituan app. PHOTO: ADOBE STOCK
A newly built district in northern China is being used to test how cities function when infrastructure, data and automation are integrated from the ground up. In Xiong'an New Area, traffic systems, public monitoring and urban services are designed to respond in real time rather than operate on fixed rules.
At the centre of this is a traffic management system powered by more than 20,000 roadside sensors. These track traffic flow, vehicle types and congestion levels, feeding data into an AI system that adjusts signals in milliseconds. Official figures show this has reduced the average number of stops per vehicle by half. The system also detects equipment faults, sends alerts and generates maintenance requests without manual input.
Automation extends beyond roads. Drones are deployed across the city for routine monitoring. In the Rongdong district, roadside units release drones that follow fixed patrol routes of around 1.27 kilometres, completing each run in about five minutes. They are used to monitor traffic, detect illegal parking and inspect public spaces. Similar systems operate in parks to track water levels and issue flood alerts, while in some work zones, drones transport packages of up to five kilograms between buildings.
These applications reflect a broader approach: integrating multiple systems into a single, connected urban framework. Unlike older cities where infrastructure evolves in layers, Xiong’an has been built with coordinated digital systems from the outset. This allows transport, maintenance and public services to operate through shared data systems rather than in isolation.
Alongside this, the area is being developed as a technology and innovation hub. Since its establishment in 2017, it has attracted more than 400 branches of state-owned enterprises and over 200 companies working in sectors such as artificial intelligence, aerospace information and digital technology.
This ecosystem supports projects like the “Xiong’an-1” satellite, which completed research, design, production and testing within eight months of regulatory approval in 2025. The satellite is currently undergoing testing, with a planned launch expected in the second quarter of 2026. It forms part of a broader push to build an aerospace information industry in the region.
The area is also structured to bring companies, research and production closer together. At the Zhongguancun Science Park in Xiong’an, which spans 207,000 square metres, 269 technology companies operate across sectors including AI, robotics and biotechnology. The park hosts more than 2,700 researchers and industry professionals, with companies organised into sector-specific clusters.
Policy support continues to shape this development. In early 2026, the State Council approved the upgrade of Xiong’an’s high-tech industrial development zone to national level status, with a focus on attracting high-end research and strengthening links between scientific development and industrial output.
Xiong’an is positioned as a testing ground for how smart city systems can be deployed at scale. The model depends on coordinated planning, integrated infrastructure and sustained policy support. Whether these systems can be adapted to existing cities, where infrastructure and governance are more fragmented, remains an open question.
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AI’s expansion into the physical world is reshaping what investors choose to back
Updated
March 17, 2026 1:02 AM
Exterior view of the Exchange Square in Central, Hong Kong. PHOTO: UNSPLASH
Artificial intelligence is often discussed in terms of large models trained in distant data centres. Less visible, but increasingly consequential, is the layer of computing that enables machines to interpret and respond to the physical world in real-time. As AI systems move from abstract software into vehicles, cameras and factory equipment, the chips that power on-device decision-making are becoming strategic assets in their own right.
It is within this shift that Axera, a Shanghai-based semiconductor company, began trading on the Hong Kong Stock Exchange on February 10 under the ticker symbol 00600.HK. The company priced its shares at HK$28.2, debuting with a market capitalization of approximately HK$16.6 billion. Its listing marks the first time a Chinese company focused primarily on AI perception and edge inference chips has gone public in the city — a milestone that underscores growing investor interest in the hardware layer of artificial intelligence.
The listing comes at a time when demand for flexible, on-device intelligence is expanding. As manufacturers, automakers and infrastructure operators integrate AI into physical systems, the need for specialized processors capable of handling visual and sensor data efficiently has grown. At the same time, China’s domestic semiconductor industry has faced increasing pressure to build local capabilities across the chip value chain. Companies such as Axera sit at the intersection of these dynamics, serving both commercial markets and broader industrial policy priorities.
For Hong Kong, the debut adds to a cohort of technology companies seeking public capital to scale hardware-intensive businesses. Unlike software firms, semiconductor designers operate in a capital-intensive environment shaped by supply chains, fabrication partnerships and rapid product cycles. Their presence on the exchange reflects a maturing investor appetite for AI infrastructure, not just consumer-facing applications.
Axera’s early backer, Qiming Venture Partners, led the company’s pre-A financing round in 2020 and continued to participate in subsequent rounds. Prior to the IPO, it held more than 6 percent of the company, making it the second-largest institutional investor. The public offering provides liquidity for early investors and new funding for a company operating in a highly competitive and technologically demanding sector.
Axera’s market debut does not resolve the competitive challenges of the semiconductor industry, where innovation cycles are short and global competition is intense. But it does signal that investors are placing tangible value on the hardware, enabling AI’s expansion beyond the cloud. In that sense, the listing represents more than a corporate milestone; it reflects a broader transition in how artificial intelligence is built, deployed and financed — moving steadily from software abstraction toward the silicon that makes real-world autonomy possible.