Construction of Oppo’s global mobile terminal research and development (R&D) headquarters in the Chinese city of Hangzhou has stalled due to “adjustments to the plans” (our translation), according to the Yuhang District Future Sci-Tech City Management Committee, a local government authority responsible for managing and coordinating the operations of the Future Sci-Tech City, also known as Haichuang Park in Hangzhou, Chinese media outlet National Business Daily reported last Friday.
Why it matters: The delay to the project suggests potential challenges for the Chinese phone brand, such as logistical or strategic issues. It also indicates possible adjustments in their expansion plans, which may affect their overall innovation and competitive edge.
Details: Oppo’s global mobile terminal R&D headquarters in Hangzhou is due to become one of its key R&D centers in China, embody2ing the brand’s vision of balancing aesthetics with innovative technology, according to a previous statement from an Oppo representative, the National Business Daily report mentioned.
- The Oppo global mobile terminal R&D headquarters building covers 48,900 square meters, with a construction site area of 392,300 square meters. Construction began in September 2021, and the project is expected to be completed and operational by 2027.
- In June 2022, the Management Committee of the West Hangzhou Science and Technology Industry Cluster Area announced that the foundations had already begun being laid for Oppo’s new headquarters project. By that time, the TRD (Tamped Rock Drilling) and rotary piling work had been finished, and 60% of the foundation pile construction was completed.
- Last week, a reporter from National Business Daily reached out to Oppo for updates on the construction, but received no response.
Context: In recent years, Oppo has been building projects in multiple Chinese cities, including Hangzhou, Dongguan, and Shenzhen.
- An Oppo smart manufacturing center, located in Dongguan and with an investment of around RMB 10 billion ($1.38 billion), began construction in 2019. The global computing division of this center, launched in 2023, offers cloud computing capabilities that support trillion-scale AI model training and ultra-low network latency of two milliseconds.
- Another major Oppo base in Shenzhen, which began construction in 2020, saw its main structure completed this September. The company plans to fully complete the 243,800 square meter complex by 2025.
- In October 2024, market intelligence firm IDC’s latest report revealed that China’s smartphone shipments reached 68.78 million units in the third quarter, up 3.2% year-on-year. The top five brands, including Vivo, Apple, Huawei, Xiaomi, and Honor, held a combined 78.9% market share.
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