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

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An Oppo shop at the China International Consumer Electronics Exchange/Exhibition Centre (CEEC) in Shenzhen seen in April 2019. Photo: Shutterstock

Che Panin BeijingandIris Dengin Shenzhen

Published: 1:35pm, 12 May 2023Updated: 9:43pm, 15 May 2023

Chinese smartphone maker Oppo has abruptly closed down its chip design subsidiary, Zeku, to the shock of employees, according to the company and former workers, in a new cautionary tale for Chinese businesses pursuing the government’s drive for semiconductor self-sufficiency.

Oppo announced the move on Friday with a brief statement, blaming “uncertainties in the global economy and smartphone market” and calling it a “difficult decision”.

The news came as a surprise to Zeku employees, who received less than a day’s notice. One employee, who declined to be named, told the South China Morning Post that workers were told on Thursday not to go into the office the next day. “I can’t even go back to the office to get the laptop,” the employee said.

Oppo declined to comment beyond its Friday statement.

Just two weeks ago, Zeku was still publishing ads looking for new workers. Job postings covered dozens of positions including for a chip architecture engineer, chip verification and software coders at locations in Shanghai, Beijing, Chengdu and Xian, according to its official recruitment channel on WeChat.

Oppo is one of the largest Chinese smartphone brands, ranking fourth in global shipments in the first quarter. However, as the smartphone market has declined, Oppo shipments have taken a hit, falling 22 per cent last year to 103 million units, according to data from IDC.