Oppo is shutting down chip development business

12 May 2023
Oppo claims uncertainty in the global economy and the smartphone industry as the reasoning behind the move.

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notafanboy, 12 May 2023Ok mr. business runner. You know so much. Your expertise on... moreNo, just tired of conspiracy theories. State-owned ZTE is still contracting with TSMC to manufacture chips for base stations using N7. There's no reason that oppo would be banned.

    MRSTEK, 12 May 2023I bet few people here is familiar with OPPO's operatio... moreOk mr. business runner. You know so much. Your expertise on the subject is infinite. We all want to be like you.

      MRSTEK, 12 May 2023No it's just a typical BBK move. The parent company de... moreI bet few people here is familiar with OPPO's operation in China. If you know their business model and history you won't be surprised that they pulled out. Designing chips is just not that profitable for them and could be very very expensive.

      Guess what's the best seller in China in the last quarter? Reno 9, around 10M devices. What's the 2nd runner-up? Oppo A58, more than 5M devices.

      Among the 10 best sellers there are 6 oppo devices and most of them are mid-range, with minimum sales number around 1.8M. That's just like how they had done with R-series in 2013-2019. It's their business model, it's in their blood.

      In this situation, why bother design new chips when you can farm money?

        Chinese smartphone maker Oppo abruptly closes chip design unit Zeku, another casualty in semiconductor sufficiency drive
        Oppo, the fourth largest smartphone brand in the world, announced the move in a short statement on Friday after giving employees less than a day’s notice
        As China pushes for chip self-sufficiency, fabless firms are finding it difficult to sign on manufacturers of their designs amid US export restrictions

          Txindoki, 12 May 2023Just like Huawei was banned from using TSMC, oppo could fac... moreNo it's just a typical BBK move. The parent company decides that designing chips is too expensive and their current business model is perfect for farming money from ordinary users. Check their history.

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            • rennnnn
            • 8xJ
            • 12 May 2023

            So no Marisilicon X2?

              Anonymous, 12 May 2023Mary Silicon is made at Tsmc . This subsidiary is design... moreJust like Huawei was banned from using TSMC, oppo could face the same problem, so they closed their chip design division.

                Wow, that's even worse than I though.
                Perhaps they will shift to EV like Xiaomi and or in way like Meizu/Geely?

                Pretty sure they will more out from Europe. Beware buyers for the software support, if they stop ... They don't have to provide anything anymore, even though they will be burned as a brand. Don't theink they will do it due to backlash but at least try ... Yeah, considering these past few month and the open/unpaid invoice they left to their team in Europe/France, it's their modus operandi!

                They have a lot of IP though ... I wonder what they'll do with since they will stop their research? I wonder if QC has something to do, with a side payment? 🙃

                  Anonymous, 12 May 2023uncertain phone market or USA pressure??Nothing to do with the US, ppl here don't understand BBK's business model.

                  the parent company won't let them use billions of dollars to support the development of a chipset, especially when the outcome may not be feasible.


                  their main profit comes from offline sales in their stores, targeting mid-range market. by their logic why bother to make chipsets if you can farm money from ordinary users?

                    Anonymous, 12 May 2023We have Snapdragon and MediaTek and Exynos. Nothing else is... moreExynos haha good one

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                      • Anonymous
                      • 6Q4
                      • 12 May 2023

                      Dr. Watson, 12 May 2023They really just developed 2 chips and then went 'bye-... moreyeah, and?

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                        • Anonymous
                        • Ids
                        • 12 May 2023

                        We have Snapdragon and MediaTek and Exynos. Nothing else is needed.

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                          • Anonymous
                          • 0p}
                          • 12 May 2023

                          Anonymous, 12 May 2023well the reason is simple who the one will manufature it la... moreMary Silicon is made at Tsmc .
                          This subsidiary is design team, not factory.

                            They really just developed 2 chips and then went 'bye-bye' 💀

                              Lol 😂🤣🤣🤣🤣

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                                • Andres
                                • uIh
                                • 12 May 2023

                                Haha..that lawsuit by Nokia really ended Oppo's business

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                                  • Anonymous
                                  • XS%
                                  • 12 May 2023

                                  We needed this, and the smartphone industry needed this for competition's sake. There's no way we are getting out of this incremental update model anytime soon.

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                                    • Anonymous
                                    • XTA
                                    • 12 May 2023

                                    well the reason is simple who the one will manufature it latter since china got banned on chip industry 🤣

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                                      • Anonymous
                                      • 0p}
                                      • 12 May 2023

                                      MarioBartos, 12 May 2023Couldn't they at least sell some of it? I thought this... moreNothing.

                                      Vivo has own finances, while Oppo has to deal with any losses generated by their sub-brands.

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                                        • Anonymous
                                        • XWg
                                        • 12 May 2023

                                        don't want to be the next huawei.