Shared factories give startups lift-off in Dongguan

In Dongguan, Guangdong province, there is a unique factory that stands apart from traditional manufacturing facilities.

Unlike conventional factories that operate only after receiving orders, this shared factory at the Songshan Lake science and technology industrial park accepts even single-unit orders, helping startups overcome the initial hurdles in building their production and supply chains from scratch.

"Many startups simply want to validate whether their concepts can be turned into real products, often before reaching mass production readiness," said Zeng Lin, general manager of the shared factory operated by high-tech startup incubator XbotPark.

Zeng illustrated the challenges startups face with an example: "A smart dishwasher may involve over 200 components, from tiny screws to materials and assembly, each requiring coordination with different suppliers."

For young companies, vetting and managing such a complex supply network can be daunting, the manager said.

"The shared factory played a crucial role in our 'zero-to-one' phase, especially in early research and development, small-batch testing, and rapid prototyping, which made it instrumental in our growth," said Liu Xitong, a senior executive at robot power module developer Direct Drive Tech.

Liu added that the company ultimately chose to establish itself in the incubating base due to the area's strong manufacturing capabilities and mature supply chain ecosystem, which accelerated its journey from concept to product and, eventually, scaled delivery.

"Currently, we have 10 supply platforms covering everything from electronic circuits to mold injection, along with two service platforms and three pilot production spaces. Essentially, we can handle most hardware startup product needs," Zeng noted.

From July 2023 to May 2025, the shared factory served over 100 clients, collaborated with more than 100 suppliers, and shipped more than 300,000 products.

According to Liu, the robotics startup has expanded into its own large-scale production base, achieving full-chain capabilities from design and prototyping to manufacturing, testing, and certification.

"We have to date independently designed and built over 10 automated and semi-automated production lines for core robotic components. In the embodied intelligence sector, we developed a globally leading open-source wheel-legged robot platform, with thousands of units delivered to more than 50 countries and regions," he said.

Another entrepreneur at the incubator values not only the base's production support but also its full life-cycle help for product development in the early growth stage.

"At the beginning, our team had just five members, but the base still allocated us a small open-water testing dock," said Pan Zongliang, co-founder of marine propulsion company ePropulsion.

After over a decade of growth, Pan said the firm now operates its own production facility in Dongguan. Its products — ranging from 500 W to 1000 kW electric outboard motors, pod drive motors, inboard motors, batteries and energy systems — are sold in over 60 countries and regions across North America, Europe, Asia, and Australia, Pan said.

"Our primary market is Europe and the United States, where our small and mid-sized electric outboard motors led global shipments last year," Pan said, adding that as China's new-energy marine market expands, the company's domestic share has also witnessed significant growth.

To date, ePropulsion works with over 40 global distributors and more than 800 dealers, supplying products to a slew of clean-energy events like SailGP and the America's Cup, Pan said.

To date, over 140 hard-tech companies have been incubated at Xbot-Park, six of which have become unicorns valued at over $1 billion, boasting an 80 percent survival rate.

"Our incubation model has expanded nationwide from Songshan Lake, with more bases setting up in cities like Ningbo, Changzhou, Chongqing, Shenzhen, Guangzhou, and the Hong Kong Special Administrative Region," said Yang Xi, head of the incubation base.

Xu Jiayi contributed to this story.