While the U.S. government has put Huawei, a Chinese telecommunication equipment manufacturer, on its list of trading sanctions, Hanwha Techwin announced that it will gradually reduce its use of Huawei's products in system semiconductor, which is the "heart" of CCTV cameras. It is seen as a move that is conscious of its exports to the U.S., which is a major market.
According to Hanwha Techwin and others on June 16, Hanwha Techwin has decided to gradually reduce SoC system semiconductor's ratio of HiSilicon, which is a subsidiary of Huawei, in its "IP camera" product line, which is called CCTV camera.
Currently, Hanwha Techwin is equipped with Hi-Silicon's SoC system semiconductor at a rate of 25 percent from its flagship IP camera, and plans to continue to reduce the portion of its relatively low-priced Hi-Silicon until the first quarter of next year.
Hanwha Techwin is a subsidiary of Hanwha Aerospace. It is planning to replace Hi-Silicon system semiconductor with Ambarella's or Hanwha Techwin's own system semiconductor.
IP camera refers to CCTV camera that is connected to the wired and wireless Internet and can transmit images to other devices such as smartphones and tablets in real time. A smart home camera that can see inside a house from outside is also a type of CCTV camera. SoC stands for "System on Chip" and is a semiconductor that has all of its fully operational products and systems in a single chip.
Hanwha Techwin is the No. 1 maker of IP cameras in South Korea, and exports are more in supply than domestic demand. Although its exports to China is few as there are many low-cost IP camera companies in China, the U.S. is its major export market.
Last month, the U.S. Commerce Department designated Hi-Silicon and 68 Huawei and its affiliates as trading-restricted companies. Huawei is currently receiving a large portion of semiconductors that are used in major products such as smartphones, telecommunication equipment, data centers and others from its subsidiary Hi-Silicon, but it is inevitable that it will be affected by this sanction.