Chinese mobe-makers playing a long game with homebrew chips says analyst
Chinese supply chain analyst outfit Jiwei has suggested local smartphone makers are having limited success with their attempts to create homegrown silicon.
Jiwei reports that Oppo pledged in 2019 to spend over $7 billion on its own silicon, and has since delivered athose chips are yet to be mass produced and won't be used in many Oppo models because they're not mature compared to kit Oppo can buy off the shelf. The analyst also opines that Oppo is a long way from being able to build modems for its devices, and that local alternatives such as those from Huawei are sound products – but that Chinese manufacturers still need to shop offshore to meet their needs. The same problems confront Xiaomi, the analyst said.That's good news for the likes of Qualcomm and MediaTek, which currently dominate sales of mobile silicon to all players.
Chinese manufacturers are acutely aware of their dependence on overseas suppliers. US sanctions have shown that parts can become impossible to access if Washington wills it. Building their own chips is one way to reduce the risk of geopolitics interfering with their businesses. But as Wang points out, Oppo's efforts have produced just two pieces of silicon in two years, they won't be available in volume until later in 2023, and even then won't be widely used. Which looks like failure.
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