Oppo's chip design division was established in 2019. However, Oppo recently announced it will discontinue Zeku, which includes MariSilicon X products, neural processing units (NPUs) that improve the quality of photos and videos taken on smartphones. The reason given by the best-selling Chinese phone manufacturer is the instability of the smartphone industry and the global economy.
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| Chinese company Oppo abruptly shuts down its chip design division. |
Oppo's chip design division unexpectedly closed down, leaving over 2,000 Zeku employees uncertain about their future. Meanwhile, Oppo remains silent on the matter, only stating that they will make appropriate arrangements.
Although China has eased Covid-19 restrictions, consumer sentiment remains reluctance to make expensive purchases. Therefore, the country's smartphone market is facing difficulties and is struggling to recover.
According to research firm Canalys, smartphone sales declined 14% in 2022, with total shipments falling below 300 million units for the first time in a decade. In the first quarter, smartphone shipments decreased 11% year-on-year to 67.2 million units, the lowest level since 2013.
Oppo's move to close its chip design division comes as chip procurement is hampered by US export controls targeting advanced semiconductors. According to Wei Shaojun, chairman of the integrated circuit design division of the China Semiconductor Industry Association (CSIA), only 566 out of 3,243 chip companies last year recorded revenues exceeding 100 million yuan.
Amidst the sanctions, chip design companies are facing numerous difficulties in finding manufacturing partners. Meanwhile, TSMC – the world's largest chip manufacturer – has stopped accepting orders for HiSilicon chips after the US sanctioned Huawei. Since October 2022, Washington has banned the export of chips and advanced chip manufacturing equipment to China without a license.
In late 2022, Oppo unveiled its second chip to improve Bluetooth audio. However, the company never disclosed how much it invested in Zeku before closing down.
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