Oppo will stop producing chips for its mobile devices

Oppo abandoned the idea of ​​producing its own processors for high-performance terminals. In accordance with South China Morning Postmanufacturer Zeku unexpectedly closed its subsidiary responsible for the development of chips. Oppo said that the uncertainty in the global economy and the fall in smartphone sales were the determining factors.

“This is a complex decision and we will address the relevant issues in due course,” a company spokesman said. The move took Zeku employees by surprise, who received a day’s notice and were unable to return their belongings. Closing of a subsidiary will affect more than 3,000 workers located in offices in Shanghai, Xi’an, Beijing and Chengdu.

Zeku was founded in 2019 as mobile processor initiative. US economic sanctions on China have forced companies to seek independence in semiconductors. With Zeku, Oppo wanted to replicate the Apple Silicon formula and for this he opened offices in different countries in order to recruit the largest number of specialists.

In accordance with bloombergshanghai unit has over 200 patentsmost associated with semiconductors.

Oppo has released an image processor for its Find X series

Although Zeku’s closure cut short Oppo’s push to develop its own chips, the subsidiary succeeded in realizing the idea. MariSilicon X, the Neural Processing Unit (NPU) for Find X terminals, was announced in late 2021. 6nm chip improves photographic performance and provides greater energy efficiency

Among its features we find the ability to record videos in night mode with 4K resolution and HDR, AI noise reduction and capture photos with a dynamic range of 20 bits at 120 dB. According to Oppo, MariSilicon X processes up to 18 trillion operations per second; enough power to handle artificial intelligence tasks.

Despite progress, the sanctions imposed by the United States, which restrict exports of advanced chips to China, were decisive in Zeku’s ending. These measures prevent companies from the Asian country from obtaining technologies for the development of semiconductors. The regulations of the US Department of Commerce restrict not only access to processors, but also to the equipment for their production.

Added to this, decline in smartphone sales in China For companies, it was key to adjust the strategy. Oppo hit hardest by this fiasco in 2022, according to data IDC. Following Zeku’s closure, the manufacturer said it would “continue to make good products and create value as usual.”