In a move that has stunned the tech industry, Oppo has confirmed the closure of its chip subsidiary Zeku. The Shanghai-based company was responsible for the development of Oppo’s MariSilicon series of chips, which included the MariSilicon X ISP and MariSilicon Y audio chip.
The decision to shut down Zeku was reportedly made due to uncertainty in the global economy and the smartphone industry. Oppo had invested over $1.4 billion in its chipset development business, and the closure of Zeku is a significant blow to the company’s ambitions.
Oppo had established its chip-making business in 2019 and had made significant strides in developing in-house co-processors, ISPs, modems, power management, and audio chips. However, with the ongoing global economic uncertainties, the decision to close Zeku appears to be a pragmatic one.
Many in the industry had speculated that Oppo’s chip-making business was aimed at reducing the company’s reliance on external chip suppliers. However, the closure of Zeku suggests that the company may have had to re-evaluate its strategy in the face of changing market conditions.
The closure of Zeku is undoubtedly a significant setback for Oppo, but the company remains optimistic about its future prospects. With its strong brand, innovative products, and extensive distribution network, Oppo is well-positioned to weather the current storm and emerge even stronger in the future.
