Ambarella Speaks On Huawei, Shortages, And China
The Huawei Hisilicon shortage is impacting the global market, with major chip rival Ambarella addressing this in its most recent investor call.
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 *******
***********'* ** ****** (*****) ******** ****, *** ******* **** ** ******* to **** ** ***-**** *** **** market ***** ** ********* ********* ** provide ****** ****, *** ** **** face ***** *********** ** ********* *****-*** chips. *****, ********* *** *** * number ** **** ******* *** ******* camera ************* **** *** **** ******* as ************* *** ************ ******** ****-********* solutions.
Huawei *** ************* **** *********** ********* *********
********* ************ *** ********* ******** *** that ********* **** **** ******** ** a ****** ** ****, ****** "********* cannot **** ***** ********* ****". **** **** *****************'* ******** ** *** ** ********** of ********'* ****** ********** ** ********** ******* **** ** foreign ********** ***** ** ************ ******* for ******. **** *** ****** ****, whom ****** ********** **** ********** **, to ***** ********* ********** *** **** its **** ***** ** ********* ***** on ********* **.
*******, ********* ***** "* *** ** customers.. ***** * **** ****** ** inventory ** *** ** **** *** this *********** ******." ********* **** ******** seeing ********* ********* ** ****** ******* HiSilicon ** "******* ********* ** * very, **** **** ***, ***** **** caused * *****-**** ********** ** *** supply ****".
********* ******* ** **** ******* ******** on ***-*** ***** **/**** ********* ***** are **** ** *** ***** ** gain ****** ***** *** ***-**** ***** chips ** *****. *********'* **** ***** is ** ********* ****** ** ****-*** chips, ****** *********, ***** *****, **** say, ** ** ********* ***-***, "$* to $*, $*" ** *****. ******* pressure ** ***-*** ***** ***** ***** because ***** ** *********** *********** ** the ***-*** **** **** ***** *** Taiwan **** ******. *** ****** ************* looking *** ***-**** ***** *****, ********* believes ***** *** *** ***** *********** out *****, ******* *** ******* ** a "**** ********" ** **** ****** share.
Dahua *** ********* ********** **** ** ********* *******
***** ***** *** ********* ********* *** ~20% ** *********'* ***** ******* * year ***, **** **** ** *** just * *** ******-***** **********. ********* continues ** ****** **** *** ******** ordering ******** **** **** **** ****, citing ***** *** *********'* ******* ** use ** *** ****** ***** ** Ambarella **** **** **** *** ************ concerns ** ******* *** **** ********:
****** ** (**** ****) *** ** (October ****) ** *** ***** ****** year ****, ** ********* ***** *** customers, *** ** *** ************ ***********, built ** ~$*** ** ****** ***** of ***** ********* ****. ***** ****, we **** ************ ****** ** ****** this ****** ***** ** ** ******** in *** ****** **** ** **** year, *** ** **** **** *********** the **** ** ***** ************, **** driven ** *** ************ ***********. ***** now, ** ***’* **** ** *** or **** ******* *** ** ****, it ** **** ** ***********, *** we **** ******** ** ******* ****.
Opportunities *** ****** ****** / ******* ***** **********
********* *** ****** **** ******* ***** taking ***** **** ***** ***********. *** CEO ****** **** **** "**** **** more ** ******* ****** ***** -- or **** ** ****** ***** ****** China ** *** **** ******" ** the ******** ****. ** ********, ** its ************ ** ****, ********* *** ********* ***** *** growth ** *****, ****** ***** ********* may ** ********* ***** ***** ** components *** **** ** *** ***** restrictions. ***, ********* ** **** ********** about *** ****** ****** ***** ***** Q2 ** "******* ** ****** ****** have ****** ********* ***** *** ********** of ****** ** ******** *********." ********* further *********:
****** *** ** ***** (**** ****** quarter) ** ***** ** **** ***** to *** ********** ************* ** **** market ***** ** *****. ** *** not **** ** ******* ******** ***** until ** **** ********** *** **** are ********, *** ** *** *** we *** ****** ******** **** **** business *** *********** *********** **********, *** this ******** ******** **** ***** *** small *********. **** *** ************ *********** changing **** ** ****, ** ****** cautious ***** *********** **** ******, *** we ** **** *** ******** ** have **** ** ***** *** ***** mentioning ** *** **** ****** ******** call.
********* ********* ** ** ********* ** its ****** ******* ** ***** *** has **** "********** ** *** ****** design *** ******** *** *** ****** SoCs ** ************ ** ******* ** all *********** *** * **** ****** pipeline ** *** ******** ************* ******* over *** **** ** ******."
"Strong ****** *** ********" *** *************
********* **** **** **** "****** ****** win ********" ** *** ***********, ********** multiple *** ******** ***** ********* ***** in *** ** ****, ********* * continuation **** ** ** ********* *-*** Ambarella *** ***********.
********* **** ********* ** ***** ** providing *** *** *** ******** ********'* Avigilon ** ******* ******** *********** ********* solution. ********* ** **** ******* ******* for ******** ************ ********, **** ** home ********** *******, ******** ** *** not ******** *** ***** ****** ************ specifically. ****, ******* **** ****, ********* announced******** ****** **** **** ********* **** as ****** *******, ***** ********, *** PIPS (*********).
Panasonic *-*** ********** ********* *** *******
***** ********* *** ******* ** ************** ****** ********* *** ******* *** not **** *********, *********, ** **** ****, ****** Panasonic ********** ** **** *** **** Ambarella ***** ******:
******* ******** ****** ******** ** ****, previously *********, ********* ** ********* **** new ****** ***** ** *** ****** SoCs ********* ***** ********* ******* ******* in *** ******** *******.
********, ** **, ********* *-*** ********** 10 *** ****** ****** ***** ** Ambarella ****, **** ********* ***** *********'* new ****** ******** ** ** ** an ******* ** *** ********* **** gain **** ****** **** ** ************* turn **** **** ***** *********:
** *****'* **** *** *** ********* react ** **** ****** [*** ********* restrictions] ***, *** *******, **** ** said ******, ** **** **** **** is ***** ** ******** ** **** us ******* *****. * ***** ******* China, ** ******* ******** **** ********* use ********* ** *** ****. *** you *** *** **** **** *** earnings **** **** ****, ** ** see **** **'** ******* ** ****** wins **** ****.
Ambarella's ***** ************ ******* ********
*********'* ******** ****** ******** ********* ** the *** ****** ****** ************ (**** Q1 ** **). ***** ************ ******** was ****, **** ******** ********* ************. Ambarella ******* "* ******* ** ****** from *** ***** **** ******* ****** makers ********* ******* ****-**** ** ****** earlier ** *** ******* ** * result ** *** ****** ** *****-**" and **** *** ********* ******** ********* security ******** "**** **** ** ******** in *** ****** ** ************* ** the ****** **** ** *** *******."
**** **% ** *********'* ********** ***** **** *** ******** ****** market, ***** **** * ***** ***, about **-**% ** *** ***** ******* came **** **** ******.
Huawei ********* **** *******
****** ************* *** ******* ** **** an *********** ** ********* ** ********* is *** **** ******* ** *** NDAA *** *** **** ***** ********** problems. *** ** ********** ** ******* recently *********** ** *********** ********* ******* ****, Semiconductor ************* ************* ****, *****’* ******* *********, *** **** consider ** * **** *********** *** Huawei ** **** **** **********. ***** China's **** ******** ** ************ ******** due ** ************ ******, ******** **** manufacturers, **** ** *********, ***** **** advantage ** **** *********** ** **** market *****.
*** ***** **, ***** ******* ** Taiwanese ************* ***** ***-*** ** *****?
***** ** * **********, ** ** Novatek ***** ** **** ** ******. This ***** (***** **** *********** ******** ************ ****) ***** ** *******:
***** *** *** ********* **** ** their ***********. *********, *******, ******* *** all ***** *********.
****, *** ***** *** ************* ** Korea **** **** ***** ** *****?
****** ***** ********** ***
*** **** ** *** *********** ***** range ** ***-**** ***** *****?
*** *********** ***** ***** ** ******** somewhere **** $**-**, ****** *** $*-* low-end ***** **** ********* ***** ** their ****. **** ***** ****** ********** depending ** *** ****** **** * company ***** ******** **** * *********.
**** **** ** ******* ***** ** there's ******** **** * *** **** clarify!
***** *** *** **** **** ****** information!The **** ************ ****** **** * can ***** ** *** ********* *** Hisilicon, ** * ******* * ***.******** is ** **** *****, *** * haven't ***** ** ****** ************* ***** them. **** ****** ************* *** ********?**** are *** ********* ** ******** ****?
***** ******'**** ********** ** ****** ********** ********, ******** **** *** ********** chips ***** *** ********* **** ** smartphones, *** ***** ************.
**************** ******************/***- * ******* *** **** **** is **** *** ***** "********* ******* learning, **** *********, ****** **********, ***** UI ********** *** ********** ******** ************" (which ******** **** **** **** ****-*** functionalities) **** *** ***-**** ****** ******.
** ***** *** ****** ***** *** SoC ******** ********? ** **** ** much ******* ** *** **** ***** be ******.
*** ****** **** *'** ****** ** that *****'* **** ** ***********/************ **** HiSilicon. ***** ****** ************* (************ ***** that *** ********** *** ******* ***, therefore, **** *********** ********* *********) **** been ********* ***** ****** ***** ** other ******* **** *********, *******, ******* for ****** ***. **** **** ******** that *********. ** **** **** **** Hikvision *** ***** *** ******* ******* their *.*-*****' ***** ** ********* *********, as ********* ********* ** *** **** recent ******** **** (***:*********’* **** ********** *** ***** ****** Wins ********)
* ***** *** ****** ******* *** is *** ************ *** ****** ** chips ***** ********-**** ******** ***********, *** just ********* ** *********. *********, ****, phones, ****, *** ** ******, ***** surveillance, *** **** **** ******** ** increased ****** **** *** **** **** and *********** ******* ********.
**** *'** ******** ** **** ****** camera ********* **** *** ********* ** take ** **** ** *** ***** increases **** **** **** **** ********* supply, *** ****** *** ********* *** the **** *** ****** (*.*. ******** price ********* *** ******* ** ****). However, ******* ***** ********* (*.*. ****, small ******** ************ *************) **** **** impacted ** ****** **** ******/*** ******** costs, **** **** ********** ****** *-**% this *****.
***** *** * *** ****** * would **** ** ****.*** ***** **, which ******* ** ********* ************* ***** low-end ** *****? * **** **** about ***** ** ******. ****, *** there *** ************* ** ***** **** make ***** ** *****?*** **** ** the *********** ***** ***** ** ***-**** range *****?
***** ***.