Oppo, the largest smartphone manufacturer in China, has decided to shut down its chip design division due to the ongoing slump in the global smartphone market.
Oppo, headquartered in Dongguan, is among the early Chinese tech companies to withdraw from the chip sector, following a period of significant investment by electronics companies concerned about stricter US export restrictions.
The company has announced the discontinuation of its chip design division, known as Zeku, citing concerns about the uncertain global economy and the mobile industry. According to a spokesperson, this decision was made on Friday.
Established in 2019, Zeku was created to operate similarly to Apple’s in-house Silicon division, which designs the primary processors for iPhones, iPads, and Mac computers. Oppo’s Zeku division was responsible for designing application processors, modems, and various connectivity solutions, such as Wi-Fi and Bluetooth components.
Zeku had facilities in several cities, including Shanghai, Xi’an, Beijing, and Chengdu, as stated on its website. According to Tianyancha, a platform for business registration data, Zeku’s Shanghai unit held almost 200 patents, many of which were related to semiconductors.
Zeku was responsible for the development of the MariSilicon X image-processing chip, which was introduced in late 2021 and has since been featured in Oppo’s flagship devices. However, Oppo has experienced a decline in shipments of over ten percent over the past year and, like other smartphone manufacturers, is grappling with excess inventory.
China, home to the world’s largest smartphone market, has seen a significant decline in demand for over a year, which has affected the entire industry. The easing of Covid-19 restrictions in the country has been slow to translate into a recovery in consumer demand. According to data from IDC, Oppo was the hardest hit among major brands in 2022.