INTUSK MAGAZINE
TO THE CORE OF YOUR HEART
Oppo to Shut Down Chip Design Unit
May 14, 2023
In light of the uncertain state of the global economy and the smartphone market, Chinese smartphone manufacturer Oppo announced it would close its chip design division.
The company, which is one of China's best-selling domestic smartphone brands, announced the closure of its Zeku unit, which it established in 2019. Its products include the MariSilicon X chip, a neural processing unit (NPU) that improves images for smartphone video and photography.
Smartphone shipments decreased 14% in 2022, and for the first time in ten years, total unit shipments fell below 300 million. According to research firm Canalys, total smartphone shipments in the first quarter decreased 11% year over year to 67.2 million units, the lowest quarterly total since 2013.
In an effort to become self-sufficient, Oppo and its Chinese rivals, including Xiaomi (1810.HK), established internal chip design departments after the United States crippled Huawei Technologies' (HWT.UL) smartphone division with sanctions that prevented it from obtaining essential parts.
Oppo is owned by BBK Electronics, which also owns Vivo, another top-selling Chinese smartphone brand.
