4 November 2026 The Backbone of the Smart Factory – SAL Launches 5G/6G Testbed

With the new 5G/6G testbed from Silicon Austria Labs (SAL) at the LIT Factory on the campus of Johannes Kepler University Linz, Upper Austria is reaching an important milestone on its path to becoming a leading European hub for industrial AI and smart manufacturing.

After all, artificial intelligence needs one thing above all else: data. For machines, sensors, robots, and AI systems to reach their full potential, enormous amounts of data must be transmitted in real time—securely, reliably, and with virtually no delay. Modern mobile communication technologies such as 5G and, in the future, 6G therefore form the technological backbone of tomorrow’s smart factory and lay the foundation for autonomous systems, digital twins, and data-driven value creation.

The SAL 5G/6G testbed provides companies of all sizes with access to a unique testing and development infrastructure where future technologies can be developed, tested, and brought to market under real-world industrial conditions in collaboration with SAL experts. Extensive funding opportunities and co-financing models facilitate access to state-of-the-art technology and accelerate the transfer of innovations into operational practice.

The testbed thus not only strengthens the innovative capacity and competitiveness of industrial companies but also supports the implementation of Upper Austria’s AI Excellence Strategy through the UAR Innovation Network. It bridges the gap between cutting-edge research and industrial application, creating ideal conditions for rapidly transforming research findings into marketable products, new business models, and high-quality jobs. This will further solidify Upper Austria’s role as a European hub for Industrial AI, smart manufacturing, and digital technologies of the future.

Silicon Austria Labs’ 5G/6G testbed was unveiled at the ESBS Austria Conference 2026 at Johannes Kepler University Linz. The conference brings together the Austrian electronics, semiconductor, and software communities and this year focused on the theme of “Physical AI”—the integration of artificial intelligence into machines, production facilities, vehicles, and other real-world systems.

Austria Develops Key Technologies Itself

“What we’re seeing here today is industrial policy in action. Strategies are developed on paper, but what matters is whether they are implemented in companies. With the 5G/6G testbed, our companies gain access to technologies before they hit the market. Our goal is clear: Austria should develop key technologies on its own rather than simply purchasing them. This is how we secure value creation and high-tech jobs in our own country,” says Minister of Innovation Peter Hanke.

Industrial Strategy Takes Shape

Electronics- and software-based systems (ESBS) are found in nearly every product and production facility today. They form the foundation for the major transformations of our time, from the digitalization of industry to the energy transition and the mobility of the future. More and more of these systems rely on artificial intelligence and must communicate with one another. This requires high-performance mobile communication technologies such as 5G and, in the future, 6G. The SAL testbed demonstrates how industrial policy goals are put into practice: research, industry, and infrastructure collaborate in one location, and results are directly integrated into operations.

Connectivity as the Key Technology Underpinning All Others

Robotics, autonomous logistics, and AI in manufacturing can only function with reliable, fast, and secure connectivity. Without it, even the best applications remain confined to the lab. 5G is already connecting machines and equipment on the production floor today. With 6G, communication, sensor technology, and artificial intelligence will converge into a single integrated system. The coming years will determine which companies and locations will shape the market with this technology. Those who contribute to its development now will also help shape the standards by which production will be carried out worldwide in the future.

SAL: A Success Story Built on Investments in the Future

“Silicon Austria Labs has developed tremendously since its founding in 2018 and, with 430 employees, is now a cornerstone of European microelectronics research. As the majority shareholder, the BMIMI is making deliberate and substantial investments in SAL and the microelectronics research infrastructure at this industrial hub. I would like to thank the State of Upper Austria and the Governor for their excellent cooperation and strong support. Especially in times of budget cuts, we are sending a clear signal: We plan not to reduce investments in SAL from 2027 to 2029, but to increase them by 25 percent. This is because SAL will play a crucial role in implementing the key technology initiative of the industrial strategy,” says Minister Hanke.

Industrial Strategy Takes Shape

Electronics- and software-based systems (ESBS) are found in nearly every product and production facility today. They form the foundation for the major transformations of our time, from the digitalization of industry to the energy transition and the mobility of the future. More and more of these systems rely on artificial intelligence and must communicate with one another. This requires high-performance mobile communication technologies such as 5G and, in the future, 6G. The SAL testbed demonstrates how industrial policy goals are put into practice: research, industry, and infrastructure collaborate in one location, and results are directly integrated into operations.

Connectivity as the Key Technology Underpinning All Others

Robotics, autonomous logistics, and AI in manufacturing can only function with reliable, fast, and secure connectivity. Without it, even the best applications remain confined to the lab. 5G is already connecting machines and equipment on the production floor today. With 6G, communication, sensor technology, and artificial intelligence will converge into a single integrated system. The coming years will determine which companies and locations will shape the market with this technology. Those who contribute to its development now will also help shape the standards by which production will be carried out worldwide in the future.

SAL: A Success Story Built on Investments in the Future

“Silicon Austria Labs has developed tremendously since its founding in 2018 and, with 430 employees, is now a cornerstone of European microelectronics research. As the majority shareholder, the BMIMI is making deliberate and substantial investments in SAL and the microelectronics research infrastructure at this industrial hub. I would like to thank the State of Upper Austria and the Governor for their excellent cooperation and strong support. Especially in times of budget cuts, we are sending a clear signal: We plan not to reduce investments in SAL from 2027 to 2029, but to increase them by 25 percent. This is because SAL will play a crucial role in implementing the key technology initiative of the industrial strategy,” says Minister Hanke.

Silicon Austria Labs is one of Europe’s leading research centers for electronics-based systems, with locations in Graz, Linz, and Villach. This was made possible by a strong partnership: As the majority owner, the Ministry of Innovation is the largest investor in SAL and in Austria’s microelectronics research infrastructure. Together with the states of Upper Austria, Styria, and Carinthia, as well as the Association of the Electrical and Electronics Industry, an infrastructure has been established that directly connects research and industry. The 5G/6G testbed in Linz is an example of how well this collaboration works, and Upper Austria is a location that consistently supports high-tech research. Commercial and open network technologies run in parallel in the testbed. This allows for testing under real-world conditions to determine which more cost-effective solutions also work for small and medium-sized enterprises. For small and medium-sized enterprises in particular, this lowers the barrier to entry for new networking technologies. Through industry partners and research projects, a broadly supported infrastructure has emerged that is now open to companies of all sizes.

Technological Sovereignty

Chips, artificial intelligence, and communications technologies will determine where value is created in the future and how independent Europe remains on strategic issues. Those who merely purchase these technologies make themselves dependent on decisions made elsewhere. Austria has excellent research institutions, a strong industrial base, and—with the 5G/6G testbed—now also the testing infrastructure needed to bring these strengths together.

“Technological sovereignty isn’t just a buzzword; it’s a matter of national competitiveness. Silicon Austria Labs demonstrates what happens when the federal government makes bold investments and the states and the business community pull together. Every euro spent here is an investment in value creation and high-tech jobs in Austria,” Hanke emphasizes.