Dahua and Hikvision Looking for Non-US SoC Suppliers, Says Ambarella
Dahua and Hikvision, now reluctant to use US suppliers, are pursuing non-US SoC manufacturers, says Ambarella, historically a significant supplier to those companies.
In this report, we examine Ambarella's comments on the current state of Dahua and Hikvision's chip supply, made during the company's recent investor call.
Executive *******
***********'* ** ****** (*****) ******** ****, *** ******* **** ********* *** Dahua *** ******** ******* *** ***-** suppliers, ************* **** *****'* ************ ** Ambarella's ***** ******* *** ****** ** just *% ** ****, ******** ** over **% ** ***** ******* * years ***, *** ****** ******** "***********." However, ****** **** **** ********* ***** potentially **** *****'* *********** ********* ** the ********* *** ****** ** **** alternative ***** **** * ******* ***** of ********** *****.
Ambarella ***** ******* **** ** "***********"
***** *** *********, ***** **** *********'* other ***** *********, *** "******* *** non-US *********" ***** "*** ******** ****** industry ** ***** ** * **** sensitive ********," ********* *** ***** **** disclosed.
********* "********* ** **** ******** **** Hikvision *** *****," **** ***** ******* only ************ ** *% ** ***** revenue ** ** **** *** *% for *** ** ****. ********* ******* Hikua ******* ** **** ** * "low ****** *****" *** "******** ****** nonmaterial," **** ****.
Reversal **** ****** ******* **** ** ****
**** ******** ******** ** * ******** from *** ****** ******* **** ********* reported * **** ******* ** ***** **** ***** ******* was ** * "*** ***** %" of ***** ********* *******. ******, ** *** ****, ********* said **** ** *** * "******** surprise" **** ***** *** "**** **** to ***** **** ***** ********* [**** Ambarella]."
*********'* ***** ******* *** ******** **+% YoY, *** ***** **** ** **+% of *********'* ******* **** * ***** ago, *** ******* *********. **** ******** over *** **** *-* ***** *** been * ****** ** *********'* ******* mix ******** **** **** ***** ******** and ******* **********.
Non-Security ************* ** *****
***** ********* ***** *** *********** ** the ******** ****** ******** ** *****, the ******* ***** ** **** ****** share ** **** ********* ***** **********, such ** **********:
*******, ** ***** **********, ***** ** not ********* ** ******** ****** **** automotive, ** ******** ** *** ****** in ***** ******* ****'* ***** * big ****** **** ** *** ******** to **** ****** ***** ****. ** continue ** ****** **** ** ******** and ********, ******* ** **** **** development ** *****.
********* **** **** **** ** **** "significant ***** ******* *************" ** *****:
********, **** ********* (******) *** ****** (HD *****) **** ***** *** ******** bases, *** *** ******** ** *** significant ***** ******* *************, ********* ** China, *** **** **** *** *** applications.
*************** ******** ******** ***** *********, *****, and *******'* ************ *** ******, ********** **** * manufacturers ** ********* *** ****** ***:
* ***'* ***** *****'* *** ***** change ** *** ******* ******** ****** market *** **. * ***** **** market ***** ** ****** *********.
Sanctions ******
***** ********* **** **** ** ********* on ***** *** ********* *** *** directly ***** ** *** *******, ********** these ********* (*** ******* ** ********** actions) *** ********* *********'* ***** ** the **** *** *****.
** ****, ********* ************ **** *** abilities ** **** ******** ** ********* and ***** *** **** ********** ** the *** *********' ******** ** *** Entity ****. *******, ** *** ****, Ambarella********* **** **** **** ***** **** to **** **** *******-******** **** ** the *********. ***** ****, *** ** *** taken **** ****** ******* ***** ***** has ********* ************* ** *****'* *** of ** **********, ******** ********* *********'* sales.
Competitive ****** ** ***** *** *********
****** **** **** ********* ***** **** Dahua *** ********* ****** *** ********* can **** ******** ** ***-** *** providers **** *** ****** ***** **** perform *********.
**** ******* ******** *** *********** *********** of ** ***** *********, ***** ************ manufacturers ************ ********* *** ******** **, which ** ******* ****** ** ****** newer *** **** ******** ***** ** allow **** **********.
** ***** ** ***&***** ** ********* may ** ******** ******.
** ** * *** *****, ** there ** * ******** ***** ***** manufacturers **** *******. ****, ***** *** advanced ******** **** ***** ****** *****'* seem ** ** *** ************ **** can ***** **** ***** ****, **** resolution, *****-******, ***, *** ** ************. It ***** **** ***** *** *********** for **** ***** ************* **** ***'* achieve ***** *****.
**** ***** *** ****, *****, ****, and **** ********** ************.
*** *** ************ ****** (********** ******* of ******) ****** ********* *** *********, not **** ***** ** *** *** being **** ** ****** *** ******.
***** **** (*** ********) ***** *** really *** *** ******. ****' *** only ** **** ****** ***** ******* lines. *** ****?