On September 19th, industry insiders reported that the chip unit of TP-Link (Shenzhen TP-Link Technologies Co., Ltd.), a global frontrunner in the router market, has been entirely shut down. This unit was mainly in charge of router chip research and development. Multiple sources with knowledge of the situation indicated that all chip-related positions at TP-Link have been eliminated, encompassing even recent hires who had been on the job for just two months. According to reports, the severance packages for laid-off employees are structured as follows: N+3 for those with over one year of tenure, N+2 for those with six months to one year of service, and N+1 for those with less than six months on the job. Individuals close to TP-Link clarified that the reported shutdown of the chip unit was not carried out by TP-Link Technologies itself, but rather by its previously associated entity, Unizone International. In 2024, TP-Link underwent a division into two distinct entities: the Chinese entity, Shenzhen TP-Link Technologies Co., Ltd., and the U.S.-based company, TP-Link Systems (Unizone International). These two entities function independently, with TP-Link focusing on the domestic market and Unizone International targeting the overseas market, although both entities share the TP-Link brand name. In June of this year, Unizone International's WiFi chip unit in Zhangjiang, Shanghai, unveiled a substantial layoff plan. The layoff process was executed swiftly, with resignation procedures wrapped up in just half a day, and the severance package also amounted to N+3. At that juncture, Unizone International's management made it clear that only a select few members of the WiFi chip team would be retained, impacting a large number of employees in fields such as algorithms, verification, and design. Market analysts pointed out that Unizone International's action primarily entailed abandoning the Wi-Fi Front-End Module (FEM) R&D sector, rather than withdrawing entirely from the WiFi chip domain. As early as 2021, TP-Link had already assembled an in-house chip R&D team with the aim of developing WiFi 6 chips for smart home applications. Although they successfully completed the design and initial production of two chips, they ultimately fell short of achieving mass production. To date, there has been no announcement regarding the commercialization of TP-Link's self-developed WiFi chips, and the company still predominantly relies on MediaTek's WiFi chips. Industry experts propose that as WiFi technology continues to advance, the R&D challenges associated with next-generation Wi-Fi 7 chips are escalating. Coupled with the formidable market presence and extensive patent portfolios of major players such as Qualcomm, MediaTek, and Huawei in the Wi-Fi arena, neither TP-Link Technologies nor Unizone International holds a substantial edge. This could potentially be the pivotal factor behind TP-Link's decision to abandon in-house chip R&D.