Oppo to Close Chip Design Business Amid Extended Global Smartphone Market Decline: Details

Oppo is the first major Chinese tech firm to retreat from the chip design sector.

Advertisement
By Bloomberg News | Updated: 12 May 2023 12:34 IST
Highlights
  • Oppo set up its chip design unit Zeku in 2019
  • It was intended to work along similar lines to Apple's Silicon division
  • The Oppo group was tasked with designing applications processors, modems

Oppo is ceasing operations of the unit, named Zeku

Photo Credit: Weibo/Oppo

Oppo, China's biggest domestic smartphone maker, is closing its chip design business as the global smartphone market extends a prolonged decline.

The Dongguan-based phone maker becomes one of the first major Chinese tech firms to retreat from the chip sector, after a wave of investment in past years by electronics players wary of tightening US export curbs. The company is ceasing operations of the unit, named Zeku, due to uncertainty around the global economy and the mobile industry, a spokesperson said on Friday.

Advertisement

Set up in 2019, Zeku was intended to work along similar lines to Apple's in-house Silicon division, which develops the main processors in iPhones, iPads, and Mac computers. The Oppo group was tasked with designing applications processors, modems, and other connectivity solutions like Wi-Fi and Bluetooth parts. It had locations in Shanghai, Xi'an, Beijing, and Chengdu, according to its website. Its Shanghai unit had almost 200 patents, many of which are semiconductor-related, according to Tianyancha, a company registration data platform.

Zeku developed the MariSilicon X image-processing chip unveiled in late 2021, which has been a fixture in Oppo flagship devices since. Oppo has suffered double-digit shipment drops over the past year and, like other handset manufacturers, is facing a glut of inventory.

China's smartphone market, the world's biggest, has led to a sharp drop in demand that's lasted for over a year. The country's reopening following stringent Covid Zero restrictions has been slow to translate into a rebound in consumer demand so far. Oppo took the worst hit among major brands over the course of 2022, according to IDC data.

© 2023 Bloomberg LP


The Vivo X90 Pro has finally made its debut in India, but is the company's flagship smartphone for 2023 equipped with enough upgrades over its predecessor? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Oppo, Zeku, Apple
Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy S27 Ultra Dummy Unit Leaked With Redesigned Camera Bar
  2. OnePlus 16T Said to Feature Dimensity 9600M Chipset
  3. OnePlus Turbo 7 Could Launch Soon With This Snapdragon Chipset
  4. Asus ProArt P16, ProArt P14 Bring Local AI Computing to Creator Laptops
  5. Motorola Phones Get Festive Discounts During Flipkart Big Billion Sale
  6. Bitcoin Slips Below $77,000 as Crypto Liquidations Cross $366 Million
  7. Dell 14S Launched in India: Price, Specifications
  1. HP OmniBook 5, ProBook 4 G2iS AI PCs Launched in India: Price, Specifications
  2. Anthropic Announces Message Threads in Public Beta to Reduce Latency for Long-Running Sessions
  3. Garmin ECG App Expands to India, Supports 30-Second Heart Rhythm Readings
  4. Hong Kong Pushes for 24/7 Tokenised Settlement, Plans Stablecoin Trials
  5. Dell 14S Launched in India With Up to Intel Core 7 350 Processor: Price, Specifications
  6. ZachXBT Flags Possible Cover-Up as Crypto Theft Estimates Cross $133 Million
  7. Oppo Watch 5 Design Spotted in Leaked Real-Life Image Ahead of Imminent Launch
  8. Redmi Turbo 6 Max Could Get 7-Inch Display, 185Hz Refresh Rate
  9. Corning Opens Pune Plant to Manufacture Optical Connectivity Products for Data Centres
  10. Motorola Signature, Edge 70 Series and Moto G Phones Get Festive Discounts on Flipkart
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.