The business environment of the manufacturing industry is not only affected by various present changes including labor shortage, the handing over of skills to the next generation and mass-customization, but also by new issues that have surfaced due to the COVID-19 epidemic such as disruption of supply chains and restrictions on the movement of employees. The Smart Factory is a factory that is not only capable of dealing with the presently recognized challenges, but can also respond flexibly to unknown issues that may occur in the future. NEC is promoting the transformation of our factories into smart factories by combining our knowledge as both a manufacturing company and an IT vendor. At the same time, we provide the knowhow of smart factory construction to our customers by making best use of our expertise. This paper introduces the use of local 5G in smart factories. © 2021 NEC Mediaproducts. All rights reserved.