Ambarella Speaks On Huawei, Shortages, And China

By Isabella Cheng, Published on Sep 09, 2020

The Huawei Hisilicon shortage is impacting the global market, with major chip rival Ambarella addressing this in its most recent investor call.

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In this report, we examine Ambarella's Q2 FY2021 (C2020) investor call, including comments on:

  • Huawei HiSilicon shortages
  • Dahua and Hikvision
  • China v. outside of China growth opportunities
  • New products using Ambarella SoC
  • Panasonic switching from Huawei
  • Ambarella's Q2 financial performance

Executive *******

***********'* ** ****** (*****) investor ****, *** ******* **** it ******* ** **** up ***-**** *** **** market ***** ** ********* struggles ** ******* ****** SoCs, *** ** **** face ***** *********** ** providing *****-*** *****. *****, Ambarella *** *** * number ** **** ******* for ******* ****** ************* over *** **** ******* as ************* *** ************ offering ****-********* *********.

Huawei *** ************* **** *********** ********* *********

********* ************ *** ********* shortage *** **** ********* will **** ******** ** a ****** ** ****, saying "********* ****** **** after ********* ****". **** **** *****************'* ******** ** *** US ********** ** ********'* Entity ********** ** ********** ******* used ** ******* ********** firms ** ************ ******* for ******. **** *** forced ****, **** ****** outsources **** ********** **, to ***** ********* ********** and **** *** **** batch ** ********* ***** on ********* **.

*******, ********* ***** "* lot ** *********.. ***** a **** ****** ** inventory ** *** ** ride *** **** *********** period." ********* **** ******** seeing ********* ********* ** Taiwan ******* ********* ** "pulling ********* ** * very, **** **** ***, which **** ****** * short-term ********** ** *** supply ****".

********* ******* ** **** pricing ******** ** ***-*** chips **/**** ********* ***** are **** ** *** plans ** **** ****** share *** ***-**** ***** chips ** *****. *********'* main ***** ** ** producing ****** ** ****-*** chips, ****** *********, ***** focus, **** ***, ** on ********* ***-***, "$* to $*, $*" ** chips. ******* ******** ** low-end ***** ***** ***** because ***** ** *********** competition ** *** ***-*** side **** ***** *** Taiwan **** ******. *** camera ************* ******* *** mid-high ***** *****, ********* believes ***** *** *** other *********** *** *****, leaving *** ******* ** a "**** ********" ** gain ****** *****.

Dahua *** ********* ********** **** ** ********* *******

***** ***** *** ********* accounted *** ~**% ** Ambarella's ***** ******* * year ***, **** **** it *** **** * mid ******-***** **********. ********* continues ** ****** **** and ******** ******** ******** from **** **** ****, citing ***** *** *********'* needing ** *** ** its ****** ***** ** Ambarella **** **** **** and ************ ******** ** reasons *** **** ********:

****** ** (**** ****) and ** (******* ****) of *** ***** ****** year ****, ** ********* these *** *********, *** to *** ************ ***********, built ** ~$*** ** safety ***** ** ***** processor ****. ***** ****, we **** ************ ****** we ****** **** ****** stock ** ** ******** in *** ****** **** of **** ****, *** we **** **** *********** the **** ** ***** substitution, **** ****** ** the ************ ***********. ***** now, ** ***’* **** if *** ** **** factors *** ** ****, it ** **** ** distinguish, *** ** **** continue ** ******* ****.

Opportunities *** ****** ****** / ******* ***** **********

********* *** ****** **** bullish ***** ****** ***** from ***** ***********. *** CEO ****** **** **** "will **** **** ** revenue ****** ***** -- or **** ** ****** share ****** ***** ** the **** ******" ** the ******** ****. ** contrast, ** *** ************ ** ****, ********* *** ********* about *** ****** ** China, ****** ***** ********* may ** ********* ***** using ** ********** *** fear ** *** ***** restrictions. ***, ********* ** more ********** ***** *** growth ****** ***** ***** Q2 ** "******* ** camera ****** **** ****** concerned ***** *** ********** of ****** ** ******** solutions." ********* ******* *********:

****** *** ** ***** (July ****** *******) ** noted ** **** ***** to *** ********** ************* to **** ****** ***** in *****. ** *** not **** ** ******* customer ***** ***** ** have ********** *** **** are ********, *** ** can *** ** *** making ******** **** **** business *** *********** *********** activities, *** **** ******** includes **** ***** *** small *********. **** *** geopolitical *********** ******** **** to ****, ** ****** cautious ***** *********** **** market, *** ** ** feel *** ******** ** have **** ** ***** was ***** ********** ** our **** ****** ******** call.

********* ********* ** ** confident ** *** ****** outside ** ***** *** has **** "********** ** see ****** ****** *** momentum *** *** ****** SoCs ** ************ ** cameras ** *** *********** and * **** ****** pipeline ** *** ******** introductions ******* **** *** next ** ******."

"Strong ****** *** ********" *** *************

********* **** **** **** "strong ****** *** ********" in *** ***********, ********** multiple *** ******** ***** Ambarella ***** ** *** Q2 ****, ********* * continuation **** ** ** Panasonic *-*** ********* *** productions.

********* **** ********* ** would ** ********* *** SoC *** ******** ********'* Avigilon ** ******* ******** Temperature ********* ********. ********* is **** ******* ******* for ******** ************ ********, such ** **** ********** cameras, ******** ** *** not ******** *** ***** camera ************ ************. ****, earlier **** ****, ********* announced******** ****** **** **** companies **** ** ****** Techwin, ***** ********, *** PIPS (*********).

Panasonic *-*** ********** ********* *** *******

***** ********* *** ******* to ************** ****** ********* *** cameras *** *** **** compliant, *********, ** **** call, ****** ********* ********** to **** *** **** Ambarella ***** ******:

******* ******** ****** ******** of ****, ********** *********, continued ** ********* **** new ****** ***** ** our ****** **** ********* their ********* ******* ******* in *** ******** *******.

********, ** **, ********* i-PRO ********** ** *** camera ****** ***** ** Ambarella ****, **** ********* using *********'* *** ****** releases ** ** ** an ******* ** *** Ambarella **** **** **** design **** ** ************* turn **** **** ***** HiSilicon:

** *****'* **** *** our ********* ***** ** that ****** [*** ********* restrictions] ***, *** *******, like ** **** ******, we **** **** **** is ***** ** ******** to **** ** ******* China. * ***** ******* China, ** ******* ******** like ********* *** ********* in *** ****. *** you *** *** **** from *** ******** **** this ****, ** ** see **** **'** ******* up ****** **** **** that.

Ambarella's ***** ************ ******* ********

*********'* ******** ****** ******** increased ** *** *** single ****** ************ (**** Q1 ** **). ***** professional ******** *** ****, home ******** ********* ************. Ambarella ******* "* ******* in ****** **** *** major **** ******* ****** makers ********* ******* ****-**** of ****** ******* ** the ******* ** * result ** *** ****** of *****-**" *** **** its ********* ******** ********* security ******** "**** **** an ******** ** *** number ** ************* ** the ****** **** ** the *******."

**** **% ** *********'* revenue*** ***** **** *** security ****** ******, ***** just * ***** ***, about **-**% ** *** total ******* **** **** this ******.

Huawei ********* **** *******

****** ************* *** ******* to **** ** *********** to ********* ** ********* is *** **** ******* by *** **** *** but **** ***** ********** problems. *** ** ********** of ******* ******** *********** ** *********** ********* against ****, ************* ************* International ****, *****’* ******* *********, who **** ******** ** a **** *********** *** Huawei ** **** **** production. ***** *****'* **** industry ** ************ ******** due ** ************ ******, overseas **** *************, **** as *********, ***** **** advantage ** **** *********** to **** ****** *****.

Comments (5)

***** *** * *** things * ***** **** to ****.*** ***** **, which ******* ** ********* manufacturers ***** ***-*** ** chips? * **** **** about ***** ** ******. Also, *** ***** *** manufacturers ** ***** **** make ***** ** *****?*** what ** *** *********** price ***** ** ***-**** range *****?

***** ***.

*** ***** **, ***** Chinese ** ********* ************* offer ***-*** ** *****?

***** ** * **********, as ** ******* ***** is **** ** ******. This ***** (***** **** an********* ******** ************ ****) ***** ** *******:IPVM Image

***** *** *** ********* sees ** ***** ***********. SigmaStar, *******, ******* *** all ***** *********.

****, *** ***** *** manufacturers ** ***** **** make ***** ** *****?

****** ***** ********** ***

*** **** ** *** approximate ***** ***** ** mid-high ***** *****?

*** *********** ***** ***** is ******** ********* **** $10-30, ****** *** $*-* low-end ***** **** ********* cited ** ***** ****. This ***** ****** ********** depending ** *** ****** that * ******* ***** purchase **** * *********.

**** **** ** ******* below ** *****'* ******** else * *** **** clarify!

***** *** *** **** very ****** ***********!*** **** surveillance ****** **** * can ***** ** *** Ambarella *** *********, ** I ******* * ***.******** is ** **** *****, but * *****'* ***** of ****** ************* ***** them. **** ****** ************* use ********?**** *** *** strengths ** ******** ****?

***** ******'**** ********** ** ****** cameras*** ********, ******** **** use ********** ***** ***** are ********* **** ** smartphones, *** ***** ************.

**************** ******************/***- * ******* *** main **** ** **** the ***** "********* ******* learning, **** *********, ****** processing, ***** ** ********** and ********** ******** ************" (which ******** **** **** more ****-*** ***************) **** the ***-**** ****** ******.

**** ** *** **** Android-based ******* *** ***** the ******** ***.

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