Exclusive-Huawei unit ships Chinese-made surveillance chips in fresh comeback sign -sources
BEIJING/SHANGHAI (Reuters) — A Huawei Technologies unit is shipping new Chinese-made chips for surveillance cameras in a fresh sign the Chinese tech giant is finding ways around four years of U.S. export controls, two sources briefed on the unit's efforts said.
The shipments to surveillance camera manufacturers from the company's HiSilicon chip design unit started this year, according to one of the sources, and a third source familiar with the industry supply chain. One of the sources briefed on the unit said at least some of the customers were Chinese.
Huawei also unveiled new smartphones in recent weeks that use advanced chips, which analysts say are domestically made. The developments indicate the Chinese tech giant is overcoming Washington's export controls, which since 2019 have barred it from obtaining components and technology from U.S. firms without approval.
«These surveillance chips are relatively easy to manufacture compared to smartphone processors,» said the source familiar with the surveillance camera industry's supply chain, adding that HiSilicon's return would shake up the market.
A key factor is that the company appears to have worked around U.S. restrictions on chip design software. Huawei in March announced it had made breakthroughs in design tools for chips produced at and above 14 nanometres — two to three generations behind leading-edge technology, but an advance for the company.
HiSilicon mainly supplies chips for Huawei equipment but has had external customers such as Dahua Technology and Hikvision. Before the U.S. export controls, it was the dominant chip supplier to the surveillance camera sector, with brokerage Southwest Securities estimating its global share in 2018 at 60%.
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