Abandoning chip development and becoming an "assembly plant", netizens commented that without pride, one can never lift their head

Tech 2023-05-19 12:38:19 Source: Network

OPPO abandons core makingFrom the grandiose words of "50 billion in three years" to the sudden abandonment of the chip business and the dismissal of the entire 3000 person team, the boss Duan Yongping bluntly stated that developing chips is a mistake. "Correcting mistakes should be done as soon as possible, and the cost is the smallest

OPPO abandons core making

From the grandiose words of "50 billion in three years" to the sudden abandonment of the chip business and the dismissal of the entire 3000 person team, the boss Duan Yongping bluntly stated that developing chips is a mistake. "Correcting mistakes should be done as soon as possible, and the cost is the smallest. It is precisely for this reason that the chip business was suddenly completely abandoned.

Duan Yongping, founder of Bubugao, called it a mistake

Many industry insiders also expressed regret for OPPO's decision. It is undeniable that the chip industry is indeed an investment project that requires an ultra long cycle, but once successful, its returns will also be very substantial. The only problem is persistence. Samsung Electronics used to rely on assembling Sanyo TVs as its "assembly factory", but later entered the mobile phone business due to a lack of technology and patents, so it could only seek breakthroughs in appearance. It was even mocked by the then giant Motorola as "garbage that only changes the shell".

Samsung started by relying on OEM

As an "assembly plant", Samsung has not been complacent or stopped at this point, but has continuously invested profits into high-tech fields such as chips. At that time, Japan was the global leader in the semiconductor industry, with six of the top ten semiconductor companies in the world coming from Japan. At that time, Samsung was an unknown pawn.

Japanese semiconductor manufacturers once dominated the industry

But facing the huge investment required by the semiconductor industry, Samsung did not retreat but instead pledged to make a breakthrough with all its wealth. In order to win the semiconductor war, Samsung invested in research and development as well as manufacturing at any cost. In 1986, the semiconductor business experienced a cumulative loss of over $300 million. In response to the crisis, Samsung Group had to sell all its equity and all its equity capital was depleted. But even under such difficulties, Samsung did not give up on its chip business.

Samsung comes from behind and takes the lead

Persistence ultimately paid off. Firstly, the excessive strength of Japanese semiconductor companies made the United States fearful. Through the US Japan Semiconductor Agreement, the strong Japanese semiconductor industry chain was dismembered, with the lithography field shifting from Nikon and Canon in Japan to ASML in the Netherlands. In the consumer electronics and semiconductor manufacturing fields, it shifted from the top six companies such as NEC, Toshiba, and Hitachi to Samsung and TSMC, In the end, Japan only retained the core field of upstream semiconductor materials.

The era of smartphones

Huawei HiSilicon K3V2

In order to narrow the gap between Huawei and the world's top technology enterprises, Huawei built a integrated circuit design center as early as 1991, and then officially transformed itself into a Hisense reporter in 2004. Eight years later, in 2012, Huawei launched the first chip K3V2 officially installed in mobile phones. At that time, Huawei still had a significant gap in size and funding compared to technology giants such as Intel and Qualcomm. However, Ren Zhengfei and Huawei did not give up and began to iterate step by step with the Kirin chip, while also putting in huge effort and cost.

Samsung Note7 Explosion

In the end, the effort paid off. Firstly, in 2014, due to poor power control, all mobile phone manufacturers using Qualcomm processors were wiped out, and the high-end market was completely reshuffled; Subsequently, the Samsung Note7 series experienced an explosion due to design issues, leading to a global recall, resulting in a huge vacuum in the high-end smartphone market.

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Netizen comments

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