Huawei HiSilicon Shortage Impacts Surveillance Manufacturers
Huawei acknowledged problems and challenges for its HiSilicon chip business, discontinuing its flagship Kirin chip next month. IPVM has confirmed with numerous China Hisilicon customers that this will impact the video surveillance industry as well.
In this report, we examine:
- May amendment to the US Entity List rules
- HiSilicon SoC production and supply issues
- How these production issues will affect the video surveillance industry
- Risks and impacts
Entity **** **********
** ****, ****** *** *** **********, including *********, ********* ** *** ** ********** ** Commerce's ****** ****. **** ****** ** ********* **** exporting ******** ** ******/********* *** ******** harmed ******'* ****** ***** ** ** relies *** ****** ** ** ************ *********.
***** *** **** ****** **** ******** only ****** ****** ******* ** ******, a*** **** ************* *** *** **** ********. ***, even *******-******** ***** ********** **** ** Huawei *** ******* ** *** ****** Administration *********** (***) ** ***** ********** involves ** **********, ********* ******** *** manufacturing *********.
HiSilicon ***** ********** ** *** ** *********
** *********, *** *** ** ******'* ******** Business *****, ********* ** * ********** on ****** * **** ****** *********'* flagship ****, *****, ***** ** **** in ******'* ***********, ****** ****** ** ******** ***** ********* 15. **** ** * ****** ****** of *** *** ********* ** *** Entity **** *****, ***** **** ** technology ******* ** ******* ********* ** those ********* **** ********** *** *** technology ** *********** *** ******.
****** **** *** ******** ******* *** own **** ***, *******, ********** ********** to****** ************* ************* ******* (****). ***** ****** **** ****** *** chips, ** ****** ******'* ******* ** develop *** *** **** ********** ********* a "******".
**** ** ********'* ******* *********** ****** ************** ($*** ******* ***) and ***** ***** *** ********* *********, ***, *** ******** **** ** ******. **** **** begin ** *** *** *** *******, the **** ******** ************* ******* ********** available *********, ***** **** ****.
Shortage ** *** ******* ** *****, **** **** ****** ** ****** (***) ****
****** **** ********** ********* *****'* ***, but *** ************ ******** ****** ****** supply ****** ** ****** *** **** as ****. *** ** *** ***-****, Huawei ********* ***** **** ********* **** ****** ****** ** ***-**** surveillance ********** ***** **** ** ***** **** in *** ****. ***** *** **** are *** ** ******** ** ***** used ** *********** *** ********* ** not **** ** ** ******** ******* the **** *******-**** *********, **** *** 5nm ***** ****, *** ********** ****** to ******* **** ** ***** **** advanced **** **** ************ *** ******** offer.******'* "****-*** ******** ** ****** ***"*** **** ***** (***********).
No ********* ****** ************
*******, ***** *** ** ********* ************ for ****** ** ****** **** **** TSMC **** **** **********. ****** *** absolutely ** **** ********** ************ ** build *** **. ** **** **** 33 ***** ** ********** *** ** its ********** *********. ***** ***** *** rumors ** ************** ***** *** **** ********** *******, ***** ********** ** ** **********, the ********** ***** **** ** **** to ******* * **** *******, ***** is ******** *********** ****** **** *** SoCs ****.
****** ***** ****, **************, **** *********** partners ************ ****** *****. *** ******* of ** *********** ******** ******* ** state-backed************* ************* ************* *********** (****), *****'* ******* *********. *****, ****** faces **** ******* ** ****** ********** back ** *****. *** *******, ****, too, **** ** ********** ** *********** chips *** ***** ** ******** ** the *** *********, ***. **** **** simply ***** *** ************* ****-*** ** reliably ******* ******* *****. ******** *********, ******, * ***** ****** ***** chipset ********, ******* "******* **,*** ********* 3G ***** **** **** ** **** with ** ** **********." *******, *** SMIC ***** **** ****** *** *******. On *** ***** ****, **** *** introduced **** ********** * ***** ******* and ***** ******** ******* ** ** 500,000 ***** * ***.
China ****** **** ****** ****** ** ******** ** *****-***, *** ********* ** ****-***
******.***, * ***** ************* ***********, **** to****** ****** ****** ** ******** ** the *****-***, *** ** ********* ** the ****-******* ****** ************* ****** ** ***** alternative *****.
********* *** *** ************ **** **** directly ********* ** **** **** **** are ****** ****** ******. *** ***** distributor ****:
** *******, *** ***** ** **** unstable. ** **** ***** ** **** in *****. ********** *********** *** *** yet **** ******** *** *************. ** don't ****.
*** ****** ******* ***** ************ ** HiSilicon, ********* **** **** ********* ************ ******* *****,**** ****************, ********** *************.
******* ***** ** *** **** ******* because ** ** * **** **** provider ** **** ** *********.*********'* **** ****** *********** *** ******* *** (~$** ******* USD) ** ********* **** *******, ********** for**.*% ** *******'* ***** ***** ** 2019.
*******, ********* *** **** **** ** production *** ***** ** *** ***. Huawei ** ********** ******** ** *** development, ********** ** *********** **. **** smaller ****** *** ** ********** ** deliver ******* *********** ***/** *****.
*****************
****************** ******** ****** *********** ** ******** alternatives. ***** ***** ************* ***** ***** be **** ** ***** ****** ************ as ***** ** * **** ** the ************ ***** ***** ******** ** the ****** **** *****, ***-***** ************* could ** **** *********** **** **** switch. ****** *** ****** *** ** Taiwan ************ ***** ******** ***** **** of ***** ******* *** ** *** US ******* **** *** *****.
Larger ************* ******* **, *** ******* ************* *********
***** ******.*** *********** ****** ****** ****** for *** ***** ********, **** ************* IPVM *** ****** ** *** **** have ***** ******** ** ********* *** shortage. *** ***** ************ **** "** have ****** ***** *** ********" ********** of ********* ******. ******* ***** ************ declined ** ******** ******* ** *** situation, *** **** "**** **** ************ with ***** ********* ** *** ********* and ** ***** ****** *****" *** that "********* **** *** ** ******** by *** *** ******* ** **** (the ************)." ***** *********, ********** ***** who ** *********** ******** ** *** US, **** ******* ***** **** **** using ********* ** *** ** *** process ** ******** ********** **** *********. HiSilicon ********* ***** *** ****** ****.
*******, ***** ****** ************* *** ********* about ***** ********* ** ******** **** for ***, ** **** ***** **** smaller ********* **** **** ****** **** flux ******* ** *** ********. ********* has ********* ** ****** **** ** its ***** *** ***-***** *********. ***** companies **** *** *** **** ** stockpile ***** *** ********* ** **** as *** ****** **** ********* *** released. *******, ******* ********* *** ***** that ** *** ******** ***** ******* the ******** ******* *** ** **** of * ****** ********. ***** ***** smaller ******* ***** ****** **** ********* shortages, ** ** **** ****** *** them ** **** ** ***** *********** SoCs ******* **** ***** *** **** the **** ******* ******* ************** ** bigger ******* ****.
**************************, * ***** ** ***********, **** reported ** ******** *** *********. *******, the ******** ******* ** ********* *** also ********* ***** *** **** ***** of ****** ****** *** ****** *************.
Duration ** ******** ** ***
********* ** ********** ****** *** *** question **** ** *** **** **** shortage *****. ****** ********* *** *** outcome ** ******** ****** (**** ********** or ***********) **** ********* ******** **** production ** * ********** ***** ****.
***** **** ******* ***** ** ****** ramping ** **** ********** *** ** is *** ***** *** **** ** will **** *** **** ** ******* these *****. ******** ****'* ***** ** technical ******* **** **** *********** ********* investment *** *****. ***** ************ $*.* ******* *** **** ***** investors** *** ** ****** ********** ********, how **** **** ** **** *** SMIC ** ******* *********** **** *** video ************ ** *** ***** ** us.
Stocking ** ***** **** **** ** **
***** ******** ** ****** ********* *******, it ****** ************* **** ************ ***** technology. ** **** ***** **** * few ******, **** **** *** **** a ********* **********. *******, **** ******* advances *** *********** *********** ** ** video *********, ***** ************ ************* ************ compete ** ******** **, ***** ** heavily ****** ** ****** ***** *** more ******** ***** ** ***** **** on-board ** **********.
Switching ***** *** ******
***** ****** *** **** ** ******** the ********* ** ***** ************ ***, this ******** ***** ********* **** *** help ***** ******, **** ****** *** out ** *****. ********* ***** *** high ** ************* ********* ***** ****** or ****** ******* *** *********. *******, this ********* *** *** ****-**** *********** could ******* ********** ********** ** ****** SoC ******.
US ********** ****** ** ******
*** ** ********** ***, ** ** the ****, ******* ******** ***** ************ through *** ********* *** ****. **** time, *** ******* **** ******** * key ****** *** *** ******** ******* still ****** *******.
******- ** ******, ****** **, ****, the ** ********** ** ***************** ******* *********** *** *******-******** ****** ******* (***) rule. **** ******* ********* ****** ****** to ** ********** *** **** ******* 38 ****** ********** ** *** ****** List. *** ****** ********* **** *** things:
- ******** ** ***** ************** **** ****** and ************ ******** **** **** ** technology *** ****** ***.
- ******** * ******* ** **** *** third-party **** **** **** ** ********** to ******.
******** ***** **** ******** ******** ** manufacture *** **** ******-******** ***** **** with ** ********** ***/** ******. ***, even ***** **** ****** *** *** design ********** ****** ** ****** **** to *** *******.
*** ** ******** ***** ** ******* there *** ***** **** ******.?
** ***** ** * ***** ** people ********** ****** ******. ::*******::
******: ** ******, ****** **, ****, the ** ********** ** ***************** ******* *********** **********-******** ****** ******* (***) ****. *********** ********* ****** ****** ** ** technology *** **** ******* ** ****** affiliates ** *** ****** ****. *** newest ********* **** *** ******:
- ******** ** ***** ************** **** ****** and ************ ******** **** **** ** technology *** ****** ***.
- ******** * ******* ** **** *** third-party **** **** **** ** ********** to ******.
******** ***** **** ******** ******** ** manufacture *** **** ******-******** ***** **** with ** ********** ***/** ******. ***, even ***** **** ****** *** *** design ********** ****** ** ****** **** to *** *******.
******: * ***** ******* *** ***** to ******* *** **** ** ** in-depth ******* ********* ** ******* ********* HiSilicon *********. ******** *** ****** ** detailed **** ****** **** ********* ******** experts, ********* ***** *** **** ** large ** ***-***** ***** ****** *************, the **** **** *** ****** ****'* reporting *** ********:
**************************, * ***** ** ***********, **** reported ** ******** *** *********. *******, the ******** ******* ** ********* *** also ********* ***** *** **** ***** of ****** ****** *** ****** *************.
***** *******.
* ** ********* **** ***** ************ will ****** ** * ****** ** manufacturers ********** *** ********, *** ***** ingenuity **** *****.