1. HiSilicon Chipset Shortage
USA has termed “Huawei Technologies Co., Ltd.” a national security risk and has proceeded to cease supply business to “HiSilicon”, a company wholly owned by Huawei Technologies Co., Ltd. Now TSMC has halted chip supplies to HiSilicon (Huawei) since 14/09/2020 due to US restrictions. This made it impossible for HiSilicon to continue producing processors for its products, including phones and surveillance products. Hisilicon’s market share for the IPC is 70% and > 90% for the NVR / DVR. This ban means a severe impact to the globally supply chain. 
2.The Impact
During the last 2 months, the chain reaction of Hislicon chipset shortage, hoarding and price jacking up, has made the market chaotic. Hisilicon 3516 chipset，one of the Hisilicon AI chipset「Hi35xx」series, is the Mid-end chipset solution, the price has raised from US$25 to US$100. According to the market survey, there is no equivalent replacement for the current Hisilicon coder/decoder chipset which is the mid –high end chipset that adopts 12~28nm process. Also the price for the high-end chipset Hi3559A (A for AI) has increased tremendously to US$500 from US$83. In fact, the low end chipset of Hisilicon has been very popular in the market, but there are also other options like CCMIC and Rockchip to choose from. However , to speak of quality and cost effective solution, Hisilicon was almost the only solution. Hikvision, Dahua, Uniview are known as the biggest customers of Hisilicon, will probably turns to Ambrella, TI and MSTAR for alternative plans. The players in the surveillance industry are now shuffling.
CCTV market starts looking for alternative NDAA Compliant solution to provide to north America market due to the banned issue of China products, especially for the NDAA section 889. Section 889 of the 2019 National Defense Authorization Act prohibits the federal government, government contractors, and grant and loan recipients from procuring or using certain “covered telecommunication equipment or services” that are produced by Huawei, ZTE, Hytera, Hikvision, and Dahua and their subsidiaries as a “substantial or essential component of any system, or as critical technology as part of any system.” With market shuffled situation, each CCTV manufacturer provides Taiwan, USA, Japan or Korea chipset to replace HiSilicon solution.
The competition is tough and the alternative solution in each manufacturer has its product category strength and weakness. TBVISION provide both HD Analog solution and IP solution in Taiwan or USA chipset solution in cameras and recorders which have complete product line supply can replace the HiSilicon solution. In the HD Analog camera , TBVISION already has used Techpoint & Nextchip solution. The hybrid DVR that TBVISION will release is a whole new series of the 4ch,8ch,16ch Novatek DVR comply with NDAA. From the network solution, TBVISION will release Realtek IP camera in 2MP and Sigmastar IP camera in 5MP, as well as NVR that adopta Novatek for the total solution in Q4 2020. 
CCTV market players have been facing the supply chain huge change during this turbulent year of 2020, USChina Trade war are accelerating global supply chain restructuring, and there’s more market opportunities for Taiwan suppliers from now on. TBVISION is planning and ready to face 2021 next year, and lead our partners to sustain the business together.
