OPPO has been working on its plan to reduce its reliance on other companies for semiconductors and in line with that, the company is reportedly all set to launch its own Application Processor (AP) next year.

If a new report coming from China is to be believed, then OPPO is working on a self-developed application processor (AP) which is expected to get launched in 2023. The mass production of the chip will be done using TSMC’s 6nm process.

Along with that, the company is also working on its own System On Chip (SoC) which will integrate the Application Processor (AP) and a Modem. This chip is expected to get launched in 2024 and will be manufactured using a 4nm process by TSMC.

OPPO has so far launched its own NPU chip named Mariana MariSilicon X. The company has said that front-end design, back-end design, IP design, memory architecture, ARM CPU design scheme, algorithm, and supply chain tape-out are completed by the company’s own team which includes the design, digital verification, and the back-end integration team.

The upcoming smartphone SoC from OPPO, which is expected to be launched in a couple of years, may not be on par with the offerings from Qualcomm and MediaTek in terms of performance. However, the company is expected to start using its own chips with budget or low-cost smartphones and then gradually keep using them to power more devices.

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A new report from Strategy Analytics reveals that the global market for application processors (AP) grew by 21 percent year-on-year to $6.8 billion in the first quarter of this year, i.e. Q1 20201.

Qualcomm led the smartphone with a 40 percent revenue share, followed by MediaTek with 26 percent. Apple stood third with a 20 percent share in the market. Samsung LSI and Huawei HiSilicon complete the list of top five vendors.

The report adds that 5G application processors accounted for 41 percent of the total smartphone APs shipped in Q1 2021. Among them, entry-level 5G APs are sought after, such as Snapdragon 480 and Dimensity 700, which will help phone makers to bring the 5G connectivity to lower price tiers.

Qualcomm and MediaTek benefited the most with the forced exit of HiSilicon from the market due to several trade restrictions. Both companies gained double-digit shipment growth in Q1 2021. On the other hand, HiSilicon‘s smartphone AP shipments declined 88 percent in the same timeframe, per Strategy Analytics’ estimates.

Apple, Samsung LSI, and Unisoc also witnessed growth in shipments as well as revenue in the first quarter. With the increase in demand post-pandemic and new technologies like 5G, the growth momentum is expected to continue throughout this year.

Huawei has already sold off Honor to make it an independent brand so that it doesn’t have to adhere to the trade restrictions and can continue to grow. Now, it remains to be seen if Huawei will spin-off HiSilicon into an independent chip business.

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