In Depth: Smartphone-Maker Oppo’s Chipmaking Dreams Dashed by Slow Progress, Internal Conflicts

Oppo Co. Ltd. abruptly shut down its chipmaking arm Zeku, blaming global economic uncertainties and a weak smartphone market. But slow progress in developing an application processor chip and poor collaboration between departments may have spelled the unit’s end, Caixin has learned.

Zeku is a major casualty in China’s campaign to become self-sufficient in all aspects of the chip industry. The business was formed in 2019 to design application processor chips, modems and other connectivity parts for Oppo’s smartphones. By the time its parent pulled the plug it was the country’s fifth largest chip designer by the size of its team.