China's SMIC Hit By US Trade Restrictions, Impact On Video Surveillance

IC
Isabella Cheng
•Published Oct 13, 2020 14:25 PM

US trade restrictions have hit Semiconductor Manufacturing International Corporation (SMIC), China's largest and most advanced foundry. While the true impact of the restrictions remains to be seen, industry sources tell IPVM this is a significant risk to China's semiconductor industry development and video surveillance offerings.

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This comes on the heels of US actions impacting Huawei HiSilicon, the largest chip manufacturer for video surveillance products. In this report, IPVM examines:

  • SMIC background
  • SMIC hit by US trade restrictions
  • SMIC plans for end of 2020 and beyond
  • SMIC and Huawei relationship
  • Impact of restrictions currently unclear, but industry anxious
  • Potential impact on video surveillance industry
  • Market's response to restrictions
  • Future for SMIC uncertain

Background ****

****, ******* ** **** *** ************* in ********, ** *****'* ******* *** most ******** *******, **** * ****** capitalization ** $** ******* ***. *******, it ** ***** **** ******* ********** ************* ************* ******* (****),********'* ******* ************* * *** ******* ****** ************** ($366 ******* ***). **** ** ********* state-owned ***, ** *** ****, ******** a$*.* ******* *** ************** * ***** *****-***** **** *** developing ******** ****-****** ********* ****** *** "Big ****".

IPVM Image

******* ** ****, *** ******* *********** ********* ****** ********* ********* ****** ******* ** ** ****** controls, **** **** *** ****** *** own ***** *** ******* ******** ***** designed ** ******* ************* *********. ****'******** ***** ********** ******. ********** ** ********** ********.

************* ****-*********** ** ********* ** *****, as *** ******* ********** ******** ** its **** ** ***** **** **** to ************ **** **% ** *** chips ***** **** ** ****. *******, industry ******* *** ***** **"********"** ***** **** ****. **** ** still***** *********** ******** ******* ** ************* *********. While **** ** **** ** ******* at***, **** *** **** ******* ********** *****.

SMIC *** ** ** ***** ************

**** ********* ********* *** **** **** ***** ******** on ******* *, ****, **** ********* certain ********* **** *** **** ** apply *** ******** ****** **** *** able ** ****** ** ********** ** SMIC *** ******* ************ *** ********* investors "** ******** ******* **** ******* in *** ********** ** *** *******."

***** ** ** ********** *********** ********* about ***** ******** ********* **** ******** by *** ** ********** ** ******** to ***** *** ********. *******, ********* say *******-**% ** ****'* ************** **** *** **, ** **** does ****** ******* ** ** ********** for *** *************.

*** ********** ** ************** ***** ************ ** ****** ***** *********, ******* ***** ********. SMIC **** ***** ******** *** *** relationship ** *** ******* ********, ******** SMIC *** ********** ******* ** *** no **** ** *** ******** *** "manufactures ************** *** ******** ************** *** ******** *** *************-***** *** ***-****."

SMIC ***** *** *** ** **** *** ******

****’* **** ** ** **** *** **********-*********** **** **** ** *** end ** *** ****, *** ****** ***** ***** ***** an *********** **** ****. *******, **** would *** ** ******** ****** ** reliably ******* ***** ************ *****.

******'* "****-*** ******** ** ****** ***"*** **** ***** (***********) ** **** *** "***** ** Camera ***" (***********). ****'* ******* ** **********-*********** **** line ***** *** ** ******** ****** to ******* ***** *** ***** ************ use. **** ********** *** **** ** the *********** ****.

Impact ** ************ ********* *******, *** ******** *******

***** ** ** ********* ******* ** the **** ************ **** **** * similar ****** ** ********* ********* **************** ******** *** ********** **** **** HiSilicon ********** ** ****, ******** ******* have **** **** **** *** ********* about ******** **** ********* **** **** and **** **** *********** **** ***** China's ************* ******** ******.

********* ** *** ******, ******* ********, and **** ******** **** *********, *** see * ******** *** *** **** 6-9 ****** ** ***** ***** ******** by **** ** ****'* ********* ******** is ***** ** ** *** *** biggest *********, ********* *** ********. **** could ** ************ ********** ********* ******* a ****** ** ****** ************* *** currently ********* **** ********* **** ** other **** ************. *******, ** ***** chip ********* *** ********** ***** *** depend ** **** *** **********, **** trade *********** ***** *** ** ******** the ******* *** ****** ** ****** chip ****** ******, ******* ** ***** faced ** *********.

Future ** **** ** **** *********** *** ****** ********* *********

******** **** *** **** ** ************ ******** ************** ********* ** **** **********, *** new ***** ************ ****** ** **** makes **** *********** ************. ******** ******* tell **** **** **** ** ******** to *********** **** *********** ***** *** HiSilicon ***** ** ********** ******* **** would *** **** *** **** ***** US ********** *** **** ********* ******* sanctions **** *** ** **********. ***** US ****** ******** ****** *** **** from ****** ***** *** *********, *** SMIC ***** *** ** **** ** receive ******** *** *********** ** ***** US *********.

Potential ****** ** ************ ** ***** ************ ********

****'* ************ ***** *********** ********** ** product *********, ***** *********, *** ************ concentration ** *** ***** ************ ******** if ****** **** ********** ** ************* affected. ************** ************ ********* ******** ****** ********* ** the ******, *** *** **** *** be ******** ** **** ** ****** to ******* ****** ***** ** ******* demand. * ***** ******** ** ***** would **** ** ****** ****** ********** as **** *** **** ** ************. Further, ***** ********* ***** *********** **** smaller ************* *** *** ****** ** compete **** ****** ************* **** *** financial ******* ** ******* *** ***** fluctuations. ** ******* ************* *** ******** out, *** ******** ***** *** ** even ******* ************* ** ***** ** the ******** ***** ** *** ******* big *******, **** ********* *** *****.

SMIC ***** ****** ** * ***** *** ** **** **** *** ********

****'* **** **** *** ******** ****** have *** * * ***** *** since ***** ****** *****.

IPVM Image

****'* ********* ** ** ***** ************ levied ******* **** **** *** **** as * ***** ** *** ******, as ***** *** **** ****** ******** after ****'* ****** ** ******* *, 2020 **** *** **** **** ***** Exchange. **** ****'* **** **** *** Shanghai ****** *** ******* ******* ********** to *** **** ** ***** ********* of *** ***** ************** *********************** ****.

**** ****** ** ****** **% ** October **, **** ** ******** *** Hong **** ********* ************* **** ******** China **** ******* ** **** ******** a "************" ** *** ********** *********. SMIC *** ********** **** *** *** **** ** its ****** *+* ****** **********, ****** *****, * *****-*** ***********, reported. ******* *** ***** ***** **** news ******* *+* ** **** ** similar ***** **********, ***** ** ********. *******, **** made ***** *+* ** ************ ******** *** "***-**** ************"*** ** *** * ****** *********** for ***. *+*'* ******* ** *** video ************ ******** *** ********* ******* and **** **** * *** ***** to ***** * ****** *** ********** high ****** **********.

Future *** **** *********

***** *** ******* ** *** **** trade ************ *** ***** *******, *** risk ** ******** ********* **** ******* domestic **** ****** ** ****'* ********* production ** ********* ** *** ****** customers. ***** ******* *** **** *********** about *****'* ************* ******** ****** ** the **** ** ***** ************. ****** restrictions, *** **** **** **** ** even ******* ** ******* ** * global ***** **** ***** *** ************* foundries.

Comments (2)
JE
Jeremy Ellis
•Oct 14, 2020

**** ******** ******** ******** ** *** impact ********. **** ** **** ********, targeted ********** ***** **********.

IC
Isabella Cheng
•Dec 14, 2020
IPVMU Certified

****** ******, ******** **:

******* ****** *** *********** ************ *** ********* ****** *** *** broader ***** ************* ******** **** ***** both ** *** **** ** ***** affected ** ** ****** ******** *** independently ** *** ********, ******* ** running *** ** ***** *** ********** on ****. ** ******:

***** **** ********** *** *** ******** technology ******** ** *** **** ******, but ** *********** **** *** **. **** ****** many ** *** ******* ********* **** hit **** *.*. ****** *** ********* controls, ***** ****** ****** ****** ** establish * *********** ******** ** *** market *** ********** ****** ****** *****—***** mind ******* ***************.

***** *** ***** ********** *** **** semiconductor ************ * ******** ********, *** industry ***** *** **** ********** ** becoming *********** *** **** ******* **** it **** ****** ***** *** ****** trade ************ *** ** ******** ********* and ********** ******* **** *** **** to *** ****.