Hikvision and Fudan Micro's related-party transactions increased to 1.5 billion yuan

On the evening of August 10, Hikvision released an announcement stating that the amount of related procurement of materials and acceptance of services with its related party Shanghai Fudan Microelectronics and its subsidiaries will increase by no more than 600 million yuan, from the previous 900 million yuan to a cumulative amount of no more than 1.5 billion yuan in 2021.

In the first half of the year, Hikvision and Fudan Micro's related-party transactions were only 435 million yuan, which means that the related-party transactions in the second half of the year will be as high as 1.065 billion yuan! Not long ago, Goke Micro also significantly increased its related-party transactions with the Big Fund and its subsidiary joint ventures. From the above, it can be seen that the business of the two major security chip manufacturers is very good.

Fang Jing, chief analyst at Cinda Electronics, said: "The price increase of security chips is a structural price increase. Major customers have not seen aggressive price increases. The price increase will continue for some time, and the chip shortage is expected to continue until at least the middle of next year."

As for HiSilicon's "exit" from the security chip market, the biggest beneficiaries are domestic security chip companies such as Fudan Microelectronics and Goke Microelectronics. In addition, there are even reports that a domestic security chip manufacturer has hired a large number of HiSilicon security chip team employees.

A security manufacturer also told the author that its company has begun to switch from HiSilicon chips to Gokewei and has started placing chip orders with Gokewei.

According to a previous report by Jiwei.com, industry insiders revealed to the author that security IPC chips have begun to increase in price significantly since the beginning of 2021. As of now, the increase has exceeded 50%. Among the companies that have benefited from the price increase are Novatek, Goke Microelectronics, and Fudan Microelectronics.

The person told the author: "Our company used HiSilicon solutions before, but has now switched to Goke Microelectronics and Fudan Microelectronics. Since last year, most of the security IPC front-end chips have almost doubled in price. The current market situation requires placing orders several months in advance to get the chips. In addition, back-end chips including NVR and DVR have also increased in price significantly."