For every action, there will always be an opposite reaction says Isaac Newton. The action by US to restrict export of its chips to China has made Chinese companies to come out stronger after a while.
The first major sanctions were imposed in 2019, when the US government blacklisted Huawei, a Chinese telecommunications company. The blacklist prevented US businesses from providing Huawei with processors and other components. As a result, Huawei had to rely on foreign vendors for its chip needs, which had a substantial effect on its company.
Sources claim that the company’s HiSilicon chip design unit started shipping products to manufacturers of surveillance cameras this year, with some of the clients being Chinese.
The US government has also imposed sanctions on the export of chip-making equipment to China. These sanctions are designed to prevent China from developing its own semiconductor industry.
The US sanctions have had a significant impact on China’s chip industry. China is now the world’s largest importer of chips, and it is struggling to develop its own semiconductor industry.
Late in August, Huawei released the Mate 60 Pro, a new smartphone with a cutting-edge CPU that consumers said was capable of 5G speeds. Chinese state media and the general public applauded the occasion as Huawei’s smartphone company making a return after being crushed by U.S. sanctions.
Regarding the phone’s 5G capabilities or how it created the cutting-edge processor, Huawei has not made any comments. Before the United States sanctioned Huawei, HiSilicon collaborated with TSMC in Taiwan to manufacture the Kirin series, which has historically been designed by HiSilicon.
The shipments to surveillance camera manufacturers started this year, according to Reuters. The chips are relatively easy to manufacture compared to smartphone processors, and HiSilicon’s return is expected to shake up the surveillance camera market.
Huawei’s comeback in the surveillance camera market is significant because it is one of the few areas where the company is still able to compete effectively with US companies. Huawei is a leading provider of surveillance camera equipment, and its HiSilicon chips are used by many of the world’s largest surveillance camera makers.
HiSilicon’s access to electronic design automation (EDA) software from firms including Cadence Design Systems Inc., Synopsys Inc., and Siemens AG’s Mentor Graphics has been hampered by US sanctions. These businesses control the chip design market, which is essential for developing semiconductor designs before mass manufacturing.