According to the important information disclosure of Hikvision in the evening, Hikvision’s Secretary-General Huang Fanghong expressed his views on the ZTE incident. Let's take a look at the relevant content.

Hikvision's views on the ZTE incident

1. Is ZTE banned by the United States, is it possible to affect Haikang?

The cause of the ZTE incident violated the US sanctions. After the reconciliation between ZTE and the United States in March 2017, ZTE again violated the terms of the settlement, which led to the US Department of Commerce's ban on ZTE. This is a special individual event that happens to happen at the most sensitive node of trade friction between China and the United States, so that everyone is associated with the trade war.

From the perspective of US trade protection, whether it will introduce stricter technology export control rules in the future is indeed not predictable. Technical controls to protect national interests are common, but we believe that they generally do not affect ordinary, civilian technologies and products.

2. If we consider extreme trade protection policies, the United States will impose stricter technical controls on China, such as Haikang, which is also facing a ban on sales. How to look at such risks?

I want to answer two aspects, one is the NVIDIA GPU chip that everyone cares about, and the other is the parts from the United States.

1) About NVIDIA's chip

At the performance briefing in the third quarter of last year, I answered the question about the development trend of the chip. At that time, we proposed that the future is not a universal chip, the special chip will rise, and the future will be the parallel situation between the general-purpose chip and the dedicated chip. For Haikang, the most considered in the past is the performance, use environment, price, etc. of the chip, which is the price/performance ratio. In order to improve the cost performance of the chip, we have been working with a number of chip manufacturers, and are currently available in small quantities. So even if we stop the supply of NVIDIA GPU chips now, we have new solutions for AI cameras and will not suffer too much clamping and influence.

Of course, we are also very concerned about the situation of NVIDIA GPUs. We just had a phone call with Nvidia executives, and Nvidia has not received any notice.

2) About other US parts

In recent years, there have been a number of excellent components and component manufacturers in China, especially in the fields of high-definition lenses, sensors, SOC, etc., and there are very good suppliers in China.

As a manufacturer, we have attached great importance to suppliers of key materials over the years, because the adjustment of key components and the adjustment of strategies have had a huge impact on us. Therefore, we are always ready to respond to unexpected situations. Any mature mainstream product line, we have considered the backup solution.

Global economic integration is an irreversible trend, and even if we encounter some setbacks, we believe it is temporary.

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