Industry sources indicate that TP-Link's chip division, responsible for Wi-Fi chip development, has been completely disbanded. The move affects all employees, including recent hires with only a few months on the job. According to insiders, severance packages are tiered: employees with over one year of service receive N+3, six months to one year N+2, and under six months N+1.

Clarifying the situation, a source close to TP-Link noted that the dissolution does not pertain to TP-Link Technologies (Shenzhen), which focuses on the domestic Chinese market, but rather to its previously affiliated overseas entity, TP-Link Systems (Irvine, California), also known as Lianzou International. TP-Link Technologies and Lianzou International now operate independently, though both continue using the TP-Link brand.

This latest wave follows a June downsizing at Lianzou International's Wi-Fi chip unit in Shanghai's Zhangjiang Hi-Tech Park. That reduction, targeting algorithm, verification, and design roles, was reportedly completed within half a day, with severance at N+3. Analysts suggest the layoffs were focused on front-end module (FEM) development rather than a full exit from the Wi-Fi chip market.

TP-Link initially established an in-house chip team in 2021 to develop Wi-Fi 6 solutions for smart home products. While the team reportedly taped out two chips, none have reached commercial production, and TP-Link continues to rely on third-party solutions from MediaTek, Qualcomm, and others.

Market experts note that the growing technical complexity of Wi-Fi 7, coupled with the strong market share and patent portfolios of major competitors, has likely prompted TP-Link to abandon self-developed chips. The company may now be reallocating resources toward core chip technologies while phasing out less strategic initiatives such as FEM development.