The panic degree of small and medium-sized customers in the security market for the shortage of Hisilicon security chips truly reflects the dominant position of Hisilicon in this market. Statistics show that Huawei Hisilicon has a market share of more than 70% in the terminal IPC (network camera) SOC market, and more than 90% in the video recording market. Therefore, TSMC can not continue to attract attention for the progress of Hisilicon OEM chips after September 15. < / P > < p > when can the shortage of medium and high-end security chips of Hisilicon be alleviated when the future situation is still unclear? Under the benchmarking role of Hisilicon, how can domestic high-end chips achieve the break and relay? < p > < p > in August, Yu Chengdong, Huawei’s managing director and CEO of Huawei’s consumer business, said at an event: “Huawei only designed chips, not made chips. This year may be the last generation of Huawei Kirin high-end chips.” < / P > < p > Hisilicon is divided into big Hisilicon and small Hisilicon. The chips of big Hisilicon are for Huawei’s own use, while those of small Hisilicon are for industrial use. Therefore, this statement greatly increased the tension in the security market dominated by little Hisilicon. In mid August, the price of Hisilicon’s high-end IPC SOC (3559a and 3519a) suddenly rose from several hundred yuan to several thousand yuan, a sharp rise of more than five times. The price of middle end (3516d) IPC SOC also rose from several tens of yuan to more than 100 yuan, an increase of nearly four times. < / P > < p > at present, the situation is still unchanged. Zhang Wei, a veteran in the security industry: “basically, there is no alternative scheme for the two high-end chips of Hisilicon. There are more alternatives for the medium and low-end solutions. However, it takes 3-6 months to switch to a relatively mature solution, and two years to switch to a newly developed one. As a result, the shortage of goods in the market has not changed significantly. ” For the key reason of shortage, Chen Jianguo, who has more than 20 years of experience in the chip industry, said: “Hisilicon’s medium and high-end video codec chips, in addition to the relatively strong encoding and decoding ability of 4k8k level and the relatively good image effect of ISP (image signal processor), can also provide the end-to-side high computing power above 3Tops, which is a relatively scarce product specification in the industry 。 “< / P > < p > however, the shortage situation of a small number of large customers who can obtain direct supply from Hisilicon and a large number of small and medium-sized security companies are not the same. Wang Chen, who has worked in a chip foreign company for many years and is ready to enter the security industry, said: “what I understand is that Hisilicon’s inventory can continue to supply products for direct supply customers like Haikang and Dahua for 1-2 years or even 3 years.” < p > < p > Zhang Wei also said that it is no problem for Hisilicon to meet the needs of key customers for more than one year, and the market and R & D capabilities of the first-line big customers are relatively strong, and there will be 1-2 alternative solution providers outside Hisilicon. Therefore, in the short term, first-line customers will be impacted to a certain extent, and with the introduction of new chip platforms for mass production, the impact will gradually decrease. For a large number of small and medium-sized customers, because they mainly rely on Hisilicon chip solutions, they will suffer a relatively big impact and need to switch to the new chip platform for a long time. ” < / P > < p > “in the complete life cycle of a chip, there will be shortage for different reasons, and each shortage is accompanied by a relatively large market opportunity.” Chen Jianguo pointed out. China’s IPC game player is currently a chip company in Chinese mainland and Taiwan, China,

Wang Chen further said. The shortage of Hisilicon’s medium and high-end IPC has brought good opportunities to Taiwan companies that have been doing IPC, and it is also an opportunity for domestic IPC companies. ” According to Chen Jianguo, “the current security market is not only an opportunity for industry upgrading once in a decade, but also an opportunity to enter the Bureau. In the past, we can see the track clearly, and the product has evolved from VGA to 4K or even 8K, and the image processing technology has become more and more mature. Now we can understand the track. The market pattern must be dominated by the company with the best AI landing. This is a new starting point for everyone. ” < / P > < p > “out of stock definitely opens up a market opportunity, especially for companies that have chips ready. As for AI, front-end cameras are importing and landing algorithms for face recognition, detection and tracking. Until the last year or two, AI is still in a relatively early stage in the field of intelligent monitoring. If the mature market is 100%, the penetration is less than 10%. But we also see that the epidemic has made the demand for contactless face recognition devices more and more urgent. ” Wang Chen said so. As for how to impress customers with AI products, Zhang Wei’s view is: “at present, the market acceptance of traditional IPC plus AI is getting higher and higher. From the mainstream 2 megapixel to 4K and 8K IPC, the different resolution requires different computing power of AI. The key to impress customers with AI products is to better integrate AI with traditional video codec, and provide customers with a complete tool chain, better support for various AI algorithms and network models, and higher effective computing power. ” Chen Jianguo also stressed the importance of AI IPC supporting a variety of algorithms. He said: “this year’s epidemic has brought customers’ attention to AI chips to a new height. Generally speaking, whether the AI algorithm that has been verified in the cloud can still meet the mass production standard after migrating to the end side is very important. This requires repeated running in and optimization of the computational force platform and algorithm. Therefore, the compatibility and support friendliness of the computational force platform on the end side is not only the key to attract new customers, but also the key problem to be solved for switching solutions. ” < p > < p > the AI SOC of Yizhi electronics, which has been established for four years, can enable customers to realize mass production within three months. Its chips have been applied to attendance control, visual intercom, entrance gate, IPC gun machine products, etc. < / P > < p > in addition to the support of software and hardware, Chen Jianguo also pointed out from the application point of view that “the problem of AI application scenario fragmentation is to make the standardized algorithm meet the needs of different scenarios, which is also the challenge of AI IPC.” < p > < p > therefore, Chen Jianguo believes that “the threshold of current high-end solutions based on AI chips is very high. Because the original chip factory can mass produce AI SOC chips, and can push the complete production scheme to the market is very rare. The key to gaining customer recognition lies in the balance between performance and cost, and the promotion mode of adding quantity without increasing price has the highest market acceptance. ” < p > < p > cloud computing technology is also popular with AI. Zhang Wei mentioned that the construction of cloud computing and big data center will promote the cloud based video platform, with front-end cameras directly connected to the cloud, further expand the coverage and depth of intelligent security, and create more intelligent scenes in the industry. < / P > < p > if there is no ban, Hisilicon’s AI IPC chip will hardly give competitors too many opportunities. “I don’t think there will be a big change in the market structure in two or three years because of the stock. But with the increasing importance of AI, it’s not easy to judge what will happen in the future. ” Wang Chen said. < / P > < p > an AI chip start-up company in China that continues to focus on the smart vision market reveals that although there are opportunities in the market, they will not immediately change their strategy to enter the market, but will still launch competitive solutions according to the rhythm of the plan. < / P > < p > many companies want to win the high-end chip market, but it is very difficult to surpass Hisilicon. Hisilicon was founded in 2004. After many difficulties, in 2012, with the release of the second mobile phone SOC chip k3v2, Hisilicon was well known by the public, and gained market recognition by virtue of its self-developed IP and products. < / P > < p > according to the semiconductor sales ranking in the first quarter of 2020 released by IC insights, Hisilicon ranked No. 10 for the first time, worthy of the title of domestic high-end chip benchmark. < / P > < p > in terms of Hisilicon’s success in the field of security chips, many insiders have said that this is due to the continuous investment of Hisilicon in the field of video and security, which has grasped the rhythm of the industry’s technical iteration, and has the ability to continuously lead the market from standard definition to high definition to today’s AI era. < / P > < p > in this process, Hisilicon’s self-developed IP helps them to build product technical advantages. In addition, with the ecological layout of software and hardware of full stack solutions, Hisilicon’s complete portfolio in the security market makes it difficult for new entrants to make a single breakthrough. < / P > < p > “I think that in the AI era, the domestic market will definitely promote the birth of a role like Hisilicon.” Wang Chen said, “the biggest problem for domestic chip companies to go high-end is the lack of enough talents. Domestic IC design is now the master’s Guide. Next, as long as you practice your internal skills, with the promotion of sufficient market demand, and with enough patience, domestic high-end chips will certainly develop. ” < / P > < p > Hisilicon’s success in the middle and high-end security market is enough to encourage more domestic chip companies to enter the high-end market, especially in a more friendly domestic market environment. Zhang Wei said: “at present, there are many domestic policies to support the development of integrated circuit industry, and our downstream customers have higher support and tolerance for domestic chips. The high-end chips in the security field may break through in three to five years, but it may take us 10 years or more to break through the high-end chips in other fields. ” < / P > < p > will the next benchmark for domestic high-end chips be a chip company with rich accumulation, a rapidly developing AI chip company, or a start-up company entering the market? Global Tech

By ibmwl