Exclusive Huawei unit ships Chinese-made surveillance chips in comeback sign

Exclusive Huawei unit ships Chinese-made surveillance chips in comeback sign

Huawei Technologies Finds Ways Around U.S. Export Controls

Surveillance Cameras

In a groundbreaking development, Huawei Technologies, the Chinese tech giant, has found ways to circumvent the four years of export controls imposed by the United States. A unit of Huawei, the HiSilicon chip design unit, has been shipping new Chinese-made chips for surveillance cameras, according to sources familiar with the matter. These shipments began earlier this year, heralding Huawei’s ability to overcome Washington’s strict export controls.

The growth in shipments to surveillance camera manufacturers suggests that at least some of the customers are Chinese. This is in line with Huawei’s push to increase its domestic market share. Alongside these shipments, Huawei has also unveiled new smartphones that utilize advanced chips. Analysts consider these chips to be domestically made, marking a significant achievement for Huawei.

HiSilicon, which is primarily engaged in supplying chips for Huawei’s equipment, has also served external customers like Dahua Technology and Hikvision. Prior to the U.S. export controls, HiSilicon was the dominant chip supplier in the surveillance camera sector, commanding a global market share of 60% in 2018. However, due to the restrictions, HiSilicon’s market share plummeted to a mere 3.9% by 2021, as estimated by consulting firm Frost & Sullivan.

Overcoming the U.S. restrictions on chip design software has been a key factor in Huawei’s ability to develop these new chips. In March, Huawei announced breakthroughs in design tools for chips produced at and above 14 nanometers, which signifies a technological advance for the company. By working around these restrictions, Huawei has demonstrated its commitment to regaining market share and challenging competitors such as Taiwan’s Novatek Microelectronics Corp.

The return of HiSilicon and its new chips will undoubtedly shake up the surveillance camera market. These chips are relatively easier to manufacture compared to smartphone processors, which gives Huawei an advantage in the high-end arena. Huawei’s resilience in overcoming export controls highlights the company’s determination to reclaim its position in the industry.

Regarding Huawei’s smartphones, the recent launch of the Mate 60 Pro garnered significant attention. Users praised it for its advanced chip capabilities, particularly its capability for 5G speeds. Research firm TechInsights analyzed the Mate 60 Pro and identified the new Kirin 9000S chipset, most likely manufactured in China by Semiconductor Manufacturing International Corp (SMIC), as the driving force behind its performance.

The fact that Huawei has been producing smartphones with advanced chips prompted calls from U.S. lawmakers for additional pressure and “more effective export controls” on Huawei and SMIC. However, U.S. Commerce Secretary Gina Raimondo stated that the United States has no evidence of Huawei’s ability to produce smartphones with advanced chips in large volumes.

It is worth noting that the U.S. sanctions have severely restricted HiSilicon’s access to electronic design automation (EDA) software from major companies like Cadence Design Systems Inc, Synopsys Inc, and Siemens AG’s Mentor Graphics. These companies dominate the chip-design sector, providing essential blueprints for chips before mass manufacturing.

Analysts at TechInsights highlighted that Huawei’s access to advanced EDA tools, which they are not supposed to have, indicates the availability of sophisticated indigenous tools developed by the Chinese. This further illustrates Huawei’s determination to overcome the challenges posed by export controls and continue innovative chip development.

In conclusion, Huawei’s ability to find ways around U.S. export controls represents a significant achievement for the Chinese tech giant. The recent shipments of new chips for surveillance cameras, along with the launch of advanced smartphones, showcase Huawei’s resilience and determination to reclaim its market share. This development will undoubtedly shake up the industry and reshape the competitive landscape. As Huawei capitalizes on its domestic market and innovative chip design, the company showcases its ability to overcome challenges and find ways to thrive in the global technology market.

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