What’s new: Chinese smartphone and consumer-electronics maker Xingji Meizu Group has decided to shutter its chip design unit, marking another setback to China’s campaign to become self-sufficient in all aspects of the chip industry.
The company, owned by Zhejiang Geely Holding Group Co. Ltd., confirmed with Caixin on Tuesday that it plans to terminate its chip design business due to uncertainties in the global economy, and to focus more on product innovation and software user experience. The company is currently coordinating with its employees on “personnel optimization plans,” a spokesperson said.
The background: The news, which follows smartphone-maker Oppo Co. Ltd.’s abrupt shutdown of its chipmaking arm Zeku in May, is another blow to the morale of China’s more than 3,000 other chip designers.
The development of the domestic semiconductor industry has become more pressing for China as the country faces sweeping restrictions on cutting-edge chips and related technology from the world’s leading semiconductor nations.
Xingji Meizu, which was formed in early March following the merger of Hubei Xingji Shidai Technology Co. Ltd. and smartphone-maker Meizu, has also ventured into extended reality technology and the auto industry.
In June, the company signed a strategic agreement with Swedish electric-vehicle maker Polestar Automotive Holding UK PLC to set up a joint venture (JV) to build an operating system for Polestar cars sold in China.
The JV will build on Xingji Meizu’s Flyme Auto system to create a new operating system that can support in-car apps, streaming services and intelligent vehicle software, Polestar said in a statement.
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Michael Bellart (michealbellart@caixin.com)
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