(Shanghai/Beijing Comprehensive News) As the global smartphone market continues to decline, OPPO, China's largest smartphone manufacturer, has stopped its chip business.
OPPO Company announced on Friday (May 12) that in the face of the uncertainty of the global economy and mobile phone market, the company decided to terminate the business of the chip subsidiary Zheku.
Zheku has developed image processing chips and released in the end of 2021. Since then, it has been a fixed configuration of the OPPO flagship phone.
OPPO disclosed in December 2022 that as of the time, the number of chip teams had exceeded 2,000.
South China Morning Post analyzed that because the US export restrictions on semiconductors continued to upgrade, China's chip design company in the azai paddy factory was difficult.
The Red Star News under the Chengdu Business Daily believes that the overall consumer electronics market is still weak, the global smartphone market has declined, and the recovery time is greatly delayed. It should be the main reason for OPPO to make strategic adjustments.
According to Bloomberg, mobile phone manufacturers, including OPPO, have faced excess inventory.OPPO's shipments decreased by 22%last year.
Due to the decreased sales volume and decline in the capacity of wafers, China's largest wafer foundry company SMIC, the net profit of the first quarter of this year also fell 44%year -on -year, and the proportion of smartphone business revenue continued to decline.
Many international companies are also affected by market weakness, but they hope to recover in the Chinese electronic consumer market.
The mobile phone chip giant Qualcomm, in the second fiscal quarter of the end of March, revenue fell 17%year -on -year.Intel's revenue in the first quarter decreased by 36%year -on -year.
Cristiano AMON said that Qualcomm hopes that China's smartphone sales in the second half of the year can recover, but "we haven't seen meaningful signs of recovery."
