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A unit of Huawei has begun shipping newly manufactured Chinese chips for surveillance cameras,About according to a Sept. 20 report by Reuters, citing sources familiar with the unit’s activities. Huawei’s HiSilicon chip design division started shipments this year, and some of the customers involved are Chinese, sources told Reuters. In addition to these developments, Huawei has recently introduced new smartphones that incorporate advanced chips believed to be domestically produced. “These surveillance chips are relatively easy to manufacture compared to smartphone processors,” said a source familiar with the surveillance camera industry’s supply chain, adding that HiSilicon’s resurgence in this sector could disrupt the market. HiSilicon primarily supplied chips for Huawei equipment but also had external clients, including companies like Dahua Technology and Hikvision. Prior to the imposition of US export controls in 2019, HiSilicon dominated the surveillance camera chip supply sector with an estimated global market share of 60% in 2018, according to Reuters, citing data from brokerage Southwest Securities. However, this share had dwindled to a mere 3.9% by 2021, according to data from consultancy firm Frost & Sullivan. [Reuters]

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