(Yicai) Aug. 8 -- Xingji Meizu Group, the mobile phone firm acquired by an affiliate of Geely Holding Group a year ago, has decided to terminate its self-developed chip business because of the global economic uncertainty less than six months after announcing its entry into the field.

Xingji Meizu will instead focus more on product innovation and software user experience, the Zhuhai-based company confirmed to Yicai today, adding that the adjustment will lead to some personnel changes and downsizing.

Xingji Shidai Technology, an investment firm owned by Geely founder and Chairman Li Shufu, bought just over 79 percent of Meizu in July last year.

Xingji Shidai and Meizu Technology merged to form Xingji Meizu in March, with Geely’s Shen Ziyu as chairman and chief executive. Its chip research and development team had been in existence for less than six months.

The firm has businesses in three major mobile phone sectors, extended reality, and forward-looking technology, in segments including smartphones, XR technology, self-developed operating systems, and chip R&D, according to its website.

It was earlier reported that Xingji Meizu’s chip research arm may develop in-vehicle systems-grade chips, mobile phone chips, and XR chips, but that progress was only being made in the latter area as it had been established for too short a period. Xingji Meizu has not disclosed more information about its chip business.

Editor: Peter Thomas