China's SMIC Hit By US Trade Restrictions, Impact On Video Surveillance

By Isabella Cheng, Published Oct 13, 2020, 10:25am EDT

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.

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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 ****

****, ******* ** **** and ************* ** ********, is *****'* ******* *** most ******** *******, **** a ****** ************** ** $28 ******* ***. *******, it ** ***** **** smaller ********** ************* ************* ******* (TSMC),********'* ******* ************* * *** ******* market ************** ($*** ******* USD). **** ** ********* state-owned ***, ** *** 2020, ******** *$*.* ******* *** ************** * ***** *****-***** fund *** ********** ******** chip-making ********* ****** *** "Big ****".

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******* ** ****, *** foundry *********** ********* ****** ********* chips**** ****** ******* ** US ****** ********, **** does *** ****** *** own ***** *** ******* produces ***** ******** ** fabless ************* *********. ****'******** ***** ********** ******. ********** ** ********** ********.

************* ****-*********** ** ********* to *****, ** *** central ********** ******** ** its **** ** ***** 2025 **** ** ************ make **% ** *** chips ***** **** ** 2025. *******, ******** ******* say ***** **"********"** ***** **** ****. SMIC ** ********** *********** ******** ******* ** technological *********. ***** **** is **** ** ******* at***, **** *** **** started ********** *****.

SMIC *** ** ** ***** ************

**** ********* ********* *** **** **** Stock ******** ** ******* 4, ****, **** ********* certain ********* **** *** have ** ***** *** licenses ****** **** *** able ** ****** ** technology ** **** *** advised ************ *** ********* investors "** ******** ******* when ******* ** *** securities ** *** *******."

***** ** ** ********** information ********* ***** ***** specific ********* **** ******** by *** ** ********** of ******** ** ***** for ********. *******, ********* say *******-**% ** ****'* ************** **** *** **, so **** **** ****** heavily ** ** ********** for *** *************.

*** ********** ** ************** ***** ************ ** SMIC** ***** *********, ******* first ********. **** **** under ******** *** *** relationship ** *** ******* military, ******** **** *** repeatedly ******* ** *** no **** ** *** military *** "************ ************** and ******** ************** *** ******** *** commercial***-***** *** ***-****."

SMIC ***** *** *** ** **** *** ******

****’* **** ** ** make *** **********-*********** **** **** by *** *** ** the ****, *** ****** ***** years ***** ** *********** 28nm ****. *******, **** would *** ** ******** enough ** ******** ******* video ************ *****.

******'* "****-*** ******** ** Camera ***"*** **** ***** (***********) ** **** *** "Smart ** ****** ***" (***********). ****'* ******* ** technology-independent **** **** ***** not ** ******** ****** to ******* ***** *** video ************ ***. **** technology *** **** ** the *********** ****.

Impact ** ************ ********* *******, *** ******** *******

***** ** ** ********* unclear ** *** **** restrictions **** **** * similar ****** ** ********* ********* **************** ******** *** ********** shut **** ********* ********** at ****, ******** ******* have **** **** **** are ********* ***** ******** chip ********* **** **** and **** **** *********** will ***** *****'* ************* industry ******.

********* ** *** ******, certain ********, *** **** overseas **** *********, *** see * ******** *** the **** *-* ****** in ***** ***** ******** by **** ** ****'* available ******** ** ***** up ** *** *** biggest *********, ********* *** Qualcomm. **** ***** ** particularly ********** ********* ******* a ****** ** ****** manufacturers *** ********* ********* from ********* **** ** other **** ************. *******, if ***** **** ********* are ********** ***** *** depend ** **** *** production, **** ***** *********** could *** ** ******** the ******* *** ****** or ****** **** ****** issues, ******* ** ***** faced ** *********.

Future ** **** ** **** *********** *** ****** ********* *********

******** **** *** **** as ************ ******** ************** ********* ** **** production, *** *** ***** restrictions ****** ** **** makes **** *********** ************. Industry ******* **** **** that **** ** ******** to *********** **** *********** chips *** ********* ***** US ********** ******* **** would *** **** *** from ***** ** ********** and **** ********* ******* sanctions **** *** ** government. ***** ** ****** controls ****** *** **** from ****** ***** *** HiSilicon, *** **** ***** not ** **** ** receive ******** *** *********** on ***** ** *********.

Potential ****** ** ************ ** ***** ************ ********

****'* ************ ***** *********** contribute ** ******* *********, price *********, *** ************ concentration ** *** ***** surveillance ******** ** ****** chip ********** ** ************* affected. ************** ************ ********* ******** ****** shortages ** *** ******, and *** **** *** be ******** ** **** is ****** ** ******* enough ***** ** ******* demand. * ***** ******** in ***** ***** **** up ****** ****** ********** as **** *** **** to ************. *******, ***** increases ***** *********** **** smaller ************* *** *** unable ** ******* **** larger ************* **** *** financial ******* ** ******* out ***** ************. ** smaller ************* *** ******** out, *** ******** ***** see ** **** ******* concentration ** ***** ** the ******** ***** ** the ******* *** *******, like ********* *** *****.

SMIC ***** ****** ** * ***** *** ** **** **** *** ********

****'* **** **** *** Shanghai ****** **** *** a * ***** *** since ***** ****** *****.

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****'* ********* ** ** trade ************ ****** ******* them **** *** **** as * ***** ** the ******, ** ***** has **** ****** ******** after ****'* ****** ** October *, **** **** the **** **** ***** Exchange. **** ****'* **** Kong *** ******** ****** had ******* ******* ********** to *** **** ** early ********* ** *** Trump ************** *********************** ****.

**** ****** ** ****** 12% ** ******* **, 2020 ** ******** *** Hong **** ********* ************* from ******** ***** **** sources ** **** ******** a "************" ** *** production *********. **** *** completed* **** *** *** test ** *** ****** N+1 ****** **********, ****** *****, * state-run ***********, ********. ******* are ***** ***** **** news ******* *+* ** seen ** ******* ***** **********, ***** ** ********. However, **** **** ***** N+1 ** ************ ******** *** "***-**** applications"*** ** *** * direct *********** *** ***. N+1's ******* ** *** video ************ ******** *** currently ******* *** **** take * *** ***** to ***** * ****** and ********** **** ****** production.

Future *** **** *********

***** *** ******* ** the **** ***** ************ are ***** *******, *** risk ** ******** ********* from ******* ******** **** makers ** ****'* ********* production ** ********* ** its ****** *********. ***** sources *** **** *********** about *****'* ************* ******** growth ** *** **** of ***** ************. ****** restrictions, *** **** **** find ** **** ******* to ******* ** * global ***** **** ***** top ************* *********.

Comments (2)

**** ******** ******** ******** of *** ****** ********. Lots ** **** ********, targeted ********** ***** **********.

Agree
Disagree
Informative
Unhelpful
Funny

****** ******, ******** **:

******* ****** *** *********** ************ *** ********* ****** and *** ******* ***** semiconductor ******** **** ***** both ** *** **** of ***** ******** ** US ****** ******** *** independently ** *** ********, plagued ** ******* *** on ***** *** ********** on ****. ** ******:

***** **** ********** *** top ******** ********** ******** of *** **** ******, but ** *********** **** *** **. Even ****** **** ** its ******* ********* **** hit **** *.*. ****** and ********* ********, ***** proved ****** ****** ** establish * *********** ******** in *** ****** *** relatively ****** ****** *****—***** mind ******* ***************.

***** *** ***** ********** has **** ************* ************ a ******** ********, *** industry ***** *** **** roadblocks ** ******** *********** and **** ******* **** it **** ****** ***** the ****** ***** ************ put ** ******** ********* and ********** ******* **** the **** ** *** East.

Agree
Disagree
Informative
Unhelpful
Funny
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