(Yicai Global) Feb. 21 -- A tech hub in the free trade zone of Shanghai is enriching its metaverse ecosystem with CNY17.7 billion (USD2.6 billion) of extended reality projects.

A group of 15 projects involving optical parts, artificial intelligence chips, and industrial software for virtual reality, augmented reality, and mixed reality were signed to kick off in the Lingang New Area of China Shanghai Pilot Free Trade Zone today, Shanghai Securities News reported. One of the 15 is a research and development facility for key XR parts that Sunny Optical Technology, a leading lens module producer headquartered in Yuhang, will build.

The area where Tesla's Gigafactory is located aims to house an XR industry of at least CNY10 billion (USD1.5 billion) in three to five years, the administration wrote in a blueprint released today. Global shipments of XR devices should maintain a 30-percent annual growth rate to reach 35.1 million units by 2026, an industry insider said at the signing ceremony today. Last year, the figure was 9.7 million units.

XR is a driver of the metaverse. In July 2022, the municipal government of Shanghai revealed an action plan to build a metaverse-related industry of CNY35 billion (USD50.9 billion) by 2025, focusing on business, education, cultural tourism, and entertainment.

Editor: Emmi Laine, Xiao Yi