Chinese surveillance camera maker Hikvision warns of long-term chip shortage

Hangzhou Hikvision Digital Technology, China’s top surveillance camera systems maker under US trade sanctions, is bracing for an extended global chip shortage, even as the company denies any immediate impact on its operations.

Hu Yangzhong, president and general manager of Hikvision, said the current worldwide semiconductor shortfall has not had any impact on the company, but indicated that uncertainties loom on the horizon if the situation persists, according to a report by Chinese media Yicai on Saturday.

Hu described the global chip shortage, which has disrupted production of cars, smartphones, game consoles and other electronics products, as something that has never been seen in the past 30 years.

The concerns raised by Hikvision come amid a global shortage of integrated circuits (ICs) that has chip makers scrambling to supply manufacturers worldwide, including those in China’s vast home appliances sector. The country produces about two-thirds of the world’s air conditioners, televisions and microwave ovens, and about half of refrigerators and washing machines, according to data from the China Household Electrical Appliances Association.

C C Wei, chief executive of Taiwan Semiconductor Manufacturing Co (TSMC), said in a conference call earlier this week that geopolitical tensions were to blame for the dearth in ICs, which led the firm’s clients to stockpile chips and created “short-term imbalance in the supply chain”. Despite supply constraints, business is booming at TSMC, the world’s largest contract chip maker.