Huawei HiSilicon Shortage Impacts Surveillance Manufacturers

By Isabella Cheng, Published Aug 14, 2020, 09:54am EDT

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.

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

** ****, ****** *** its **********, ********* *********, were***** ** *** ** Department ** ********'* ****** list. **** ****** ** companies **** ********* ******** to ******/********* *** ******** harmed ******'* ****** ***** as ** ****** *** ****** ** ** suppliers*** *********.

***** *** **** ****** list ******** **** ****** direct ******* ** ******, a*** **** ************* *** *** **** stricter. ***, **** *******-******** items ********** **** ** Huawei *** ******* ** the ****** ************** *********** (EAR) ** ***** ********** involves ** **********, ********* software *** ************* *********.

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HiSilicon ***** ********** ** *** ** *********

** *********, *** *** ** Huawei's ******** ******** *****, announced ** * ********** on ****** * **** Huawei *********'* ******** ****, Kirin, ***** ** **** in ******'* ***********, ****** ****** ** ******** after ********* **. **** ** * direct ****** ** *** May ********* ** *** Entity **** *****, ***** bans ** ********** ******* to ******* ********* ** those ********* **** ********** use *** ********** ** manufacture *** ******.

****** **** *** ******** produce *** *** **** and, *******, ********** ********** to****** ************* ************* ******* (TSMC). ***** ****** **** design *** *****, ** called ******'* ******* ** develop *** *** **** production ********* * "******".

**** ** ********'* ******* *********** ****** ************** ($*** Billion ***) *** ***** chips *** ********* *********, ***, *** ******** **** ** ******. TSMC **** ***** ** use *** *** *******, the **** ******** ************* process ********** ********* *********, later **** ****.

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Shortage ** *** ******* ** *****, **** **** ****** ** ****** (***) ****

****** **** ********** ********* Kirin's ***, *** *** surveillance ******** ****** ****** supply ****** ** ****** IPC **** ** ****. Due ** *** ***-****, Huawei ********* ***** **** become*** **** ****** ****** in ***-**** ************ ********** ***** **** ** those **** ** *** West. ***** *** **** are *** ** ******** as ***** **** ** smartphones *** ********* ** not **** ** ** produced ******* *** **** cutting-edge *********, **** *** 5nm ***** ****, *** technology ****** ** ******* them ** ***** **** advanced **** **** ************ can ******** *****.******'* "****-*** ******** ** Camera ***"*** **** ***** (***********).

No ********* ****** ************

*******, ***** *** ** immediate ************ *** ****** to ****** **** **** TSMC **** **** **********. Huawei *** ********** ** chip ********** ************ ** build *** **. ** took **** ** ***** to ********** *** ** its ********** *********. ***** there *** ****** ** Huawei******** ***** *** **** production *******, ***** ********** ** US **********, *** ********** would **** ** **** to ******* * **** process, ***** ** ******** generations ****** **** *** SoCs ****.

****** ***** ****, **************, find *********** ******** ************ within *****. *** ******* of ** *********** ******** partner ** *****-******************* ************* ************* *********** (SMIC), *****'* ******* *********. Still, ****** ***** **** hurdles ** ****** ********** back ** *****. *** example, ****, ***, **** US ********** ** *********** chips *** ***** ** affected ** *** *** amendment, ***. **** **** simply ***** *** ************* know-how ** ******** ******* working *****. ******** *********, ******, * ***** mobile ***** ******* ********, ordered "******* **,*** ********* 3G ***** **** **** in **** **** ** nm **********." *******, *** SMIC ***** **** ****** out *******. ** *** other ****, **** *** introduced **** ********** * years ******* *** ***** reliably ******* ** ** 500,000 ***** * ***.

China ****** **** ****** ****** ** ******** ** *****-***, *** ********* ** ****-***

******.***, * ***** ************* publication, **** ******** ****** ****** ** increase ** *** *****-***, but ** ********* ** the ****-******* ****** ************* ****** to ***** *********** *****.

********* *** *** ************ have **** ******** ********* to **** **** **** are ****** ****** ******. One ***** *********** ****:

** *******, *** ***** is **** ********. ** have ***** ** **** in *****. ********** *********** has *** *** **** specific *** *************. ** don't ****.

*** ****** ******* ***** alternatives ** *********, ********* SoCs **** ********* ************ ******* *****,**** ****************, ********** *************.

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******* ***** ** *** most ******* ******* ** is * **** **** provider ** **** ** Hikvision.*********'* **** ****** *********** *** ******* *** (~$50 ******* ***) ** purchases **** *******, ********** for**.*% ** *******'* ***** sales ** ****.

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*******, ********* *** **** used ** ********** *** risks ** *** ***. Huawei ** ********** ******** in *** ***********, ********** in *********** **. **** smaller ****** *** ** challenged ** ******* ******* performance ***/** *****.

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

****************** ******** ****** *********** to ******** ************. ***** China ************* ***** ***** be **** ** ***** Taiwan ************ ** ***** is * **** ** the ************ ***** ***** affected ** *** ****** List *****, ***-***** ************* could ** **** *********** with **** ******. ****** the ****** *** ** Taiwan ************ ***** ******** their **** ** ***** blocked *** ** *** US ******* **** *** China.

Larger ************* ******* **, *** ******* ************* *********

***** ******.*** *********** ****** camera ****** *** *** whole ********, **** ************* IPVM *** ****** ** say **** **** ***** measures ** ********* *** shortage. *** ***** ************ said "** **** ****** stock *** ********" ********** of ********* ******. ******* China ************ ******** ** directly ******* ** *** situation, *** **** "**** have ************ **** ***** customers ** *** ********* and ** ***** ****** plans" *** **** "********* will *** ** ******** by *** *** ******* of **** (*** ************)." Other *********, ********** ***** who ** *********** ******** in *** **, **** already ***** **** **** using ********* ** *** in *** ******* ** becoming ********** **** *********. HiSilicon ********* ***** *** affect ****.

*******, ***** ****** ************* are ********* ***** ***** abilities ** ******** **** for ***, ** **** heard **** ******* ********* have **** ****** **** flux ******* ** *** shortage. ********* *** ********* to ****** **** ** its ***** *** ***-***** customers. ***** ********* **** had *** **** ** stockpile ***** *** ********* as **** ** *** Entity **** ********* *** released. *******, ******* ********* and ***** **** ** not ******** ***** ******* the ******** ******* *** at **** ** * supply ********. ***** ***** smaller ******* ***** ****** from ********* *********, ** is **** ****** *** them ** **** ** other *********** **** ******* they ***** *** **** the **** ******* ******* considerations ** ****** ******* have.

**************************, * ***** ** publication, **** ******** ** possible *** *********. *******, the ******** ******* ** consulted *** **** ********* about *** **** ***** of ****** ****** *** camera *************.

Duration ** ******** ** ***

********* ** ********** ****** but *** ******** **** is *** **** **** shortage *****. ****** ********* are *** ******* ** specific ****** (**** ********** or ***********) **** ********* resuming **** ********** ** a ********** ***** ****.

***** **** ******* ***** to ****** ******* ** SMIC ********** *** ** is *** ***** *** long ** **** **** for **** ** ******* these *****. ******** ****'* level ** ********* ******* will **** *********** ********* investment *** *****. ***** SMIC******** $*.* ******* *** from ***** *********** *** ** ****** production ********, *** **** will ** **** *** SMIC ** ******* *********** SoCs *** ***** ************ is *** ***** ** us.

Stocking ** ***** **** **** ** **

***** ******** ** ****** component *******, ** ****** manufacturers **** ************ ***** technology. ** **** ***** just * *** ******, this **** *** **** a ********* **********. *******, with ******* ******** *** competitive *********** ** ** video *********, ***** ************ manufacturers ************ ******* ** superior **, ***** ** heavily ****** ** ****** newer *** **** ******** chips ** ***** **** on-board ** **********.

Switching ***** *** ******

***** ****** *** **** to ******** *** ********* of ***** ************ ***, this ******** ***** ********* that *** **** ***** rivals, **** ****** *** out ** *****. ********* costs *** **** ** manufacturers ********* ***** ****** or ****** ******* *** providers. *******, **** ********* and *** ****-**** *********** could ******* ********** ********** to ****** *** ******.

US ********** ****** ** ******

*** ** ********** ***, as ** *** ****, further ******** ***** ************ through *** ********* *** bans. **** ****, *** actions **** ******** * key ****** *** *** ultimate ******* ***** ****** unclear.

******- ** ******, ****** 17, ****, *** ** Department ** ***************** ******* *********** *** *******-******** ****** product (***) ****. **** further ********* ****** ****** to ** ********** *** adds ******* ** ****** affiliates ** *** ****** List. *** ****** ********* does *** ******:

  1. ******** ** ***** ************** from ****** *** ************ products **** **** ** technology *** ****** ***.
  2. ******** * ******* ** sell *** *****-***** **** made **** ** ********** to ******.

******** ***** **** ******** licenses ** *********** *** sell ******-******** ***** **** with ** ********** ***/** Huawei. ***, **** ***** that ****** *** *** design ********** ****** ** easily **** ** *** company.

Comments (5)

***** *******.

* ** ********* **** newer ************ **** ****** as * ****** ** manufacturers ********** *** ********, and ***** ********* **** shine.

*** ** ******** ***** to ******* ***** *** chips **** ******.?

** ***** ** * shame ** ****** ********** better ******. ::*******::

******: ** ******, ****** 17, ****, *** ** Department ** ***************** ******* *********** **********-******** ****** ******* (***) rule. *********** ********* ****** ****** to ** ********** *** adds ******* ** ****** affiliates ** *** ****** List. *** ****** ********* does *** ******:

  1. ******** ** ***** ************** from ****** *** ************ products **** **** ** technology *** ****** ***.
  2. ******** * ******* ** sell *** *****-***** **** made **** ** ********** to ******.

******** ***** **** ******** licenses ** *********** *** sell ******-******** ***** **** with ** ********** ***/** Huawei. ***, **** ***** that ****** *** *** design ********** ****** ** easily **** ** *** company.

******: * ***** ******* was ***** ** ******* the **** ** ** in-depth ******* ********* ** Chinese ********* ********* *********. Although *** ****** ** detailed **** ****** **** anonymous ******** *******, ********* those *** **** ** large ** ***-***** ***** camera *************, *** **** does *** ****** ****'* reporting *** ********:

**************************, * ***** ** publication, **** ******** ** possible *** *********. *******, the ******** ******* ** consulted *** **** ********* about *** **** ***** of ****** ****** *** camera *************.

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