Shanghai:
Chinese smartphone maker Oppo said it will shut down its chip design unit, citing uncertainties in the global economy and smartphone industry.
The company, one of China’s best-selling domestic smartphone brands, said it will cease operations of its Zeku unit, which it set up in 2019. Its products include Marisilicon X chip, which is a neural processing unit (NPU) that optimizes images for video and photography taken on a smartphone.
“Due to the uncertainties in the global economy and smartphone industry, we have had to make difficult adjustments for long-term growth,” said a company representative.
China’s smartphone market, the world’s biggest, is struggling to recover from its worst slump ever as cost-conscious consumers shy away from big-ticket purchases even as the country lifts zero-Covid restrictions.
In 2022, smartphone shipments are set to decline by 14% and total unit shipments will fall below 300 million for the first time in a decade. In the first quarter, total smartphone shipments fell 11% year-on-year to 67.2 million units. All time low The quarterly total since 2013, research firm Canalys said last month.
Oppo and its Chinese rivals such as Xiaomi set up in-house chip design units in a quest for self-sufficiency after the US disabled the smartphone division of Huawei Technologies (HWT.UL) due to sanctions, preventing it from sourcing key components. was stopped.
Oppo is owned by BBK Electronics, which also owns Vivo, another best-selling Chinese smartphone brand.
