China's SMIC Hit By US Trade Restrictions, Impact On Video Surveillance
US trade restrictions have hit Semiconductor Manufacturing International Corporation (SMIC), China's largest and most advanced foundry. While the true impact of the restrictions remains to be seen, industry sources tell IPVM this is a significant risk to China's semiconductor industry development and video surveillance offerings.
This comes on the heels of US actions impacting Huawei HiSilicon, the largest chip manufacturer for video surveillance products. In this report, IPVM examines:
- SMIC background
- SMIC hit by US trade restrictions
- SMIC plans for end of 2020 and beyond
- SMIC and Huawei relationship
- Impact of restrictions currently unclear, but industry anxious
- Potential impact on video surveillance industry
- Market's response to restrictions
- Future for SMIC uncertain
Background ****
****, ******* ** **** *** ************* in ********, ** *****'* ******* *** most ******** *******, **** * ****** capitalization ** $** ******* ***. *******, it ** ***** **** ******* ********** ************* ************* ******* (****),********'* ******* ************* * *** ******* ****** ************** ($366 ******* ***). **** ** ********* state-owned ***, ** *** ****, ******** a$*.* ******* *** ************** * ***** *****-***** **** *** developing ******** ****-****** ********* ****** *** "Big ****".
******* ** ****, *** ******* *********** ********* ****** ********* ********* ****** ******* ** ** ****** controls, **** **** *** ****** *** own ***** *** ******* ******** ***** designed ** ******* ************* *********. ****'******** ***** ********** ******. ********** ** ********** ********.
************* ****-*********** ** ********* ** *****, as *** ******* ********** ******** ** its **** ** ***** **** **** to ************ **** **% ** *** chips ***** **** ** ****. *******, industry ******* *** ***** **"********"** ***** **** ****. **** ** still***** *********** ******** ******* ** ************* *********. While **** ** **** ** ******* at***, **** *** **** ******* ********** *****.
SMIC *** ** ** ***** ************
**** ********* ********* *** **** **** ***** ******** on ******* *, ****, **** ********* certain ********* **** *** **** ** apply *** ******** ****** **** *** able ** ****** ** ********** ** SMIC *** ******* ************ *** ********* investors "** ******** ******* **** ******* in *** ********** ** *** *******."
***** ** ** ********** *********** ********* about ***** ******** ********* **** ******** by *** ** ********** ** ******** to ***** *** ********. *******, ********* say *******-**% ** ****'* ************** **** *** **, ** **** does ****** ******* ** ** ********** for *** *************.
*** ********** ** ************** ***** ************ ** ****** ***** *********, ******* ***** ********. SMIC **** ***** ******** *** *** relationship ** *** ******* ********, ******** SMIC *** ********** ******* ** *** no **** ** *** ******** *** "manufactures ************** *** ******** ************** *** ******** *** *************-***** *** ***-****."
SMIC ***** *** *** ** **** *** ******
****’* **** ** ** **** *** **********-*********** **** **** ** *** end ** *** ****, *** ****** ***** ***** ***** an *********** **** ****. *******, **** would *** ** ******** ****** ** reliably ******* ***** ************ *****.
******'* "****-*** ******** ** ****** ***"*** **** ***** (***********) ** **** *** "***** ** Camera ***" (***********). ****'* ******* ** **********-*********** **** line ***** *** ** ******** ****** to ******* ***** *** ***** ************ use. **** ********** *** **** ** the *********** ****.
Impact ** ************ ********* *******, *** ******** *******
***** ** ** ********* ******* ** the **** ************ **** **** * similar ****** ** ********* ********* **************** ******** *** ********** **** **** HiSilicon ********** ** ****, ******** ******* have **** **** **** *** ********* about ******** **** ********* **** **** and **** **** *********** **** ***** China's ************* ******** ******.
********* ** *** ******, ******* ********, and **** ******** **** *********, *** see * ******** *** *** **** 6-9 ****** ** ***** ***** ******** by **** ** ****'* ********* ******** is ***** ** ** *** *** biggest *********, ********* *** ********. **** could ** ************ ********** ********* ******* a ****** ** ****** ************* *** currently ********* **** ********* **** ** other **** ************. *******, ** ***** chip ********* *** ********** ***** *** depend ** **** *** **********, **** trade *********** ***** *** ** ******** the ******* *** ****** ** ****** chip ****** ******, ******* ** ***** faced ** *********.
Future ** **** ** **** *********** *** ****** ********* *********
******** **** *** **** ** ************ ******** ************** ********* ** **** **********, *** new ***** ************ ****** ** **** makes **** *********** ************. ******** ******* tell **** **** **** ** ******** to *********** **** *********** ***** *** HiSilicon ***** ** ********** ******* **** would *** **** *** **** ***** US ********** *** **** ********* ******* sanctions **** *** ** **********. ***** US ****** ******** ****** *** **** from ****** ***** *** *********, *** SMIC ***** *** ** **** ** receive ******** *** *********** ** ***** US *********.
Potential ****** ** ************ ** ***** ************ ********
****'* ************ ***** *********** ********** ** product *********, ***** *********, *** ************ concentration ** *** ***** ************ ******** if ****** **** ********** ** ************* affected. ************** ************ ********* ******** ****** ********* ** the ******, *** *** **** *** be ******** ** **** ** ****** to ******* ****** ***** ** ******* demand. * ***** ******** ** ***** would **** ** ****** ****** ********** as **** *** **** ** ************. Further, ***** ********* ***** *********** **** smaller ************* *** *** ****** ** compete **** ****** ************* **** *** financial ******* ** ******* *** ***** fluctuations. ** ******* ************* *** ******** out, *** ******** ***** *** ** even ******* ************* ** ***** ** the ******** ***** ** *** ******* big *******, **** ********* *** *****.
SMIC ***** ****** ** * ***** *** ** **** **** *** ********
****'* **** **** *** ******** ****** have *** * * ***** *** since ***** ****** *****.
****'* ********* ** ** ***** ************ levied ******* **** **** *** **** as * ***** ** *** ******, as ***** *** **** ****** ******** after ****'* ****** ** ******* *, 2020 **** *** **** **** ***** Exchange. **** ****'* **** **** *** Shanghai ****** *** ******* ******* ********** to *** **** ** ***** ********* of *** ***** ************** *********************** ****.
**** ****** ** ****** **% ** October **, **** ** ******** *** Hong **** ********* ************* **** ******** China **** ******* ** **** ******** a "************" ** *** ********** *********. SMIC *** ********** **** *** *** **** ** its ****** *+* ****** **********, ****** *****, * *****-*** ***********, reported. ******* *** ***** ***** **** news ******* *+* ** **** ** similar ***** **********, ***** ** ********. *******, **** made ***** *+* ** ************ ******** *** "***-**** ************"*** ** *** * ****** *********** for ***. *+*'* ******* ** *** video ************ ******** *** ********* ******* and **** **** * *** ***** to ***** * ****** *** ********** high ****** **********.
Future *** **** *********
***** *** ******* ** *** **** trade ************ *** ***** *******, *** risk ** ******** ********* **** ******* domestic **** ****** ** ****'* ********* production ** ********* ** *** ****** customers. ***** ******* *** **** *********** about *****'* ************* ******** ****** ** the **** ** ***** ************. ****** restrictions, *** **** **** **** ** even ******* ** ******* ** * global ***** **** ***** *** ************* foundries.
****** ******, ******** **:
******* ****** *** *********** ************ *** ********* ****** *** *** broader ***** ************* ******** **** ***** both ** *** **** ** ***** affected ** ** ****** ******** *** independently ** *** ********, ******* ** running *** ** ***** *** ********** on ****. ** ******:
***** **** ********** *** *** ******** technology ******** ** *** **** ******, but ** *********** **** *** **. **** ****** many ** *** ******* ********* **** hit **** *.*. ****** *** ********* controls, ***** ****** ****** ****** ** establish * *********** ******** ** *** market *** ********** ****** ****** *****—***** mind ******* ***************.
***** *** ***** ********** *** **** semiconductor ************ * ******** ********, *** industry ***** *** **** ********** ** becoming *********** *** **** ******* **** it **** ****** ***** *** ****** trade ************ *** ** ******** ********* and ********** ******* **** *** **** to *** ****.
**** ******** ******** ******** ** *** impact ********. **** ** **** ********, targeted ********** ***** **********.