Shantou, China’s toy manufacturing heartland, is doubling down on AI. With a RMB 5 million annual fund and a new AI Toy Innovation Center, the city aims to become the “Global AI Toy Capital.”
SHANTOU – Known globally as China’s undisputed “Toy Capital, ” Shantou is now betting big on artificial intelligence to power its next phase of growth. On March 23, 2026, the Shantou AI Toy Industry Ecosystem Conference was held at the Shantou Cross-border Digital Economy Industrial Park. The event marked a decisive pivot for a city whose Chenghai District alone supplies roughly 60% of the world‘s toys, launching over 1,000 new toy designs every single day.
Massive scale and massive ambitions
Shantou’s toy industry has built a rock-solid foundation over four decades. Currently, the Chenghai District hosts more than 50,000 toy-related market
entities, generating an annual output value exceeding RMB 50 billion. Its export network covers more than 140 countries and regions worldwide. Yet as global demand shifts toward smart, connected, and interactive play experiences, Shantou is proactively redefining itself as the world‘s leading AI toy manufacturing hub.
Key initiatives: Funds, Innovation Centers, and AI labs
The centerpiece announcements at the March 2026 conference included:
Up to RMB 5 million in annual funding: The Shantou Overseas Chinese Experimental Zone will provide up to RMB 5 million per year in targeted funding. This financial support is designed to accelerate technological R&D, subsidize AI computing power, support data collection (datasets), incubate vertical models, strengthen cross-border trade, and enhance branding (IP) efforts.
AI Toy Innovation Center & Artificial Intelligence Lab: Two key institutions—the Shantou AI Toy Innovation Center and the Shantou Artificial Intelligence Lab—were officially unveiled at the conference.
Four core capabilities launched: During the conference, partners including China Mobile Shantou, the Shantou AI Lab, and Beijing Meihao Chongjing Technology Co., Ltd. launched four core initiatives: an AIoT platform, a toy testing system, and an AI toy industry fund to support the entire production and technology ecosystem.
The global trend toward smart toys is accelerating
Industry forecasts repeatedly cited at the conference peg the China AI toy market to exceed RMB 100 billion by 2030, with a compound annual growth rate exceeding 20%. With its unparalleled manufacturing ecosystem, deep supply chain expertise, and now ambitious government-backed AI adoption roadmap, Shantou is positioning itself to lead—not just follow—this transformation.
Implications for global toy buyers
For global toy buyers and brands, the rapid AI transformation of Shantou‘s toy industry has clear implications:
Faster time‑to‑market for AI‑enabled toys, leveraging Shantou‘s mature supply chain and dense network of component suppliers
Lower development costs due to shared AI platforms and publicly funded core technology support
Access to a new generation of“smart factory” capacity purpose-built for AI‑equipped toys
Enhanced ability to customize AI features for target markets, thanks to Shantou’s newly created AI ecosystem
Shantou‘s new multi-million RMB annual fund, its newly established AI Toy Innovation Center, and its ambitious goal to become the“Global AI Toy Capital” send a clear message to the world’s toy industry: the race to build the smart toy future is on, and this manufacturing city intends to win it.
Post time: May-19-2026
