Foreign media: OPPO has no more 'core' issues, and the burden of core manufacturing falls on Huawei's shoulders

Tech 2023-05-18 01:56:07 Source: Network

Beyond Ocean and Sky. mp33:59From Ainong Science and Technology MuseumRecently, OPPO received shocking news that the path of chip design is not feasible, and OPPO plans to give up

Beyond Ocean and Sky. mp33:59

From Ainong Science and Technology Museum

Recently, OPPO received shocking news that the path of chip design is not feasible, and OPPO plans to give up. The subsidiary Zheku Technology business has all ceased and more than 3000 employees have been disbanded. This incident has attracted attention and discussion within and outside the industry, with foreign media commenting that "OPPO no longer has a 'chip' issue, and the burden of making chips still falls on Huawei!" This article will delve into the development process of OPPO in the chip field and the reasons for its termination of chip design. At the same time, it will analyze Huawei's responsibility and pressure in the chip field.

As a major player in the Chinese smartphone market, OPPO has been committed to enhancing the competitiveness of its own products. In order to achieve this goal, OPPO established chip design company Zheku Technology in 2018, attempting to reduce dependence on external suppliers by independently developing mobile phone chips. It is reported that OPPO has invested hundreds of millions of yuan and hired top chip design teams both domestically and internationally to achieve breakthroughs in the field of chips.

In just a few years, OPPO's chip design has achieved certain results. For example, Zheku Technology has launched two Mariana series chips, an Image Neuroprocessor (NPU) and an Audio SoC chip. In addition, at the beginning of the year, it was also reported that OPPO had designed a mobile phone SoC chip and signed a cooperation agreement with TSMC, using a 4nm process with an external MediaTek 5G baseband. The chip was only a matter of time.

However, just as the outside world was looking forward to the mass production of OPPO chips, OPPO suddenly announced the termination of chip design, which was regrettable. The following reasons may be the main reasons for OPPO's decision:

The sales of mobile phones have severely declined: In recent years, the demand for smartphones has continued to decline, and the frequency of phone replacements has decreased. According to statistical data, in the first quarter of 2022, only Apple and Huawei achieved growth in mobile phone sales, while other manufacturers all declined. As a major mobile phone manufacturer, OPPO is facing tremendous pressure in this market environment.

The input-output ratio is not optimistic enough: Although OPPO has achieved certain results in the field of chip design, its output is not ideal compared to its huge investment. Core making is a capital intensive industry that requires long-term research and development and significant investment. After evaluating the current input-output ratio, OPPO may believe that the return on continuing to invest in chip design is insufficient to support the company's development.

Difficulty in core making: From a global perspective, the competitive landscape in the field of core making is relatively stable, with manufacturers such as Qualcomm, Samsung, Apple, and Huawei dividing up market share. For smartphone manufacturers such as OPPO, entering this field means having to compete with these industry giants, which is extremely difficult. Even Xiaomi has experienced failures in the field of chip manufacturing, and the actual performance of the surging S1 chip was not ideal, ultimately failing to increase sales.

Risk of US sanctions: In recent years, trade frictions between China and the United States have become increasingly fierce, and the United States has implemented strict technology and supply chain restrictions on companies such as Huawei. As a company that mainly relies on its smartphone business, OPPO has to weigh whether it can withstand US sanctions if it considers independently developing chips.

Faced with OPPO's retreat in the chip industry, it is widely believed that the burden has once again fallen on Huawei. As a leading enterprise in the Chinese communication equipment and smartphone market, Huawei has achieved world-class results in chip design. Despite severe sanctions from the United States, Huawei still insists on investing in HiSilicon research and development, striving to achieve breakthroughs in the chip field.

However, Huawei's role in the chip industry is not easy. Firstly, Huawei has experienced multiple setbacks in chip design, and only after investing heavily in the early stages did it gradually get on track and compete with manufacturers such as Apple and Qualcomm. Secondly, facing sanctions from the United States, Huawei not only needs to address supply chain issues, but also needs to cope with competitive pressures from the global market. In order to achieve this goal, Huawei needs to make tremendous efforts in terms of technology, funding, talent, and other aspects.

In the coming years, with the continuous introduction of national support policies for the chip industry and the increase of R&D investment by enterprises, the domestic chip industry is expected to achieve more breakthroughs. On the one hand, domestic enterprises will further enhance their independent research and development capabilities, thereby occupying a place in the global chip market; On the other hand, cross-border cooperation and technology introduction will provide new impetus for the development of the domestic chip industry.

Although the domestic chip industry has broad development prospects, many challenges still need to be addressed before achieving breakthroughs.

(1) Technical challenge: Currently, the global chip industry is fiercely competitive, especially in the field of high-performance chips. To gain an advantageous position in the market, domestic enterprises must overcome many technical difficulties and achieve independent innovation of core technologies.

(2) Supply chain issues: In the context of globalization, the chip industry chain is widely distributed and countries are interdependent. When facing external pressure, domestic enterprises need to strengthen supply chain construction and reduce their dependence on external suppliers.

(3) Talent shortage: The chip industry is a highly specialized field that requires a large number of talents with professional knowledge and skills. Currently, the talent reserve in the domestic chip industry is relatively insufficient, and it is necessary to increase talent cultivation efforts to provide a continuous stream of human resources support for industry development.

(4) Market competition: In the development process of the domestic chip industry, it is necessary to cope with the competitive pressure from the international market. How to stand out in the global market will be a major challenge.

conclusion

The termination of chip design by OPPO means that Chinese smartphone manufacturers have added difficulty to their path in the field of chip manufacturing. Nevertheless, we should still see China's unremitting efforts in the chip industry. As a leader in China's chip industry, Huawei will take on an important mission and continue to explore the development path of domestic chips.

In the future, if Chinese smartphone manufacturers want to break away from their dependence on external suppliers, they must increase investment and bravely climb the peak of the chip industry. At the same time, the government and industry should also increase their support to provide strong support for Chinese smartphone manufacturers in the field of chip manufacturing. Through cooperation, innovation, and continuous efforts, we have reason to believe that China's chip industry will eventually rise and contribute to the progress of the country's technological strength.

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