Can Hikvision truly lessen its reliance on US technology?

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Hikvision's Stated Strategy to Reduce Reliance on US Technology

Hikvision's general manager, Hu Yangzhong, has indicated that the company's overall reliance on US components is "extremely low" and that preparations for potential US sanctions have been underway for over a year. The company anticipates a decrease in its dependence on graphics processing units (GPUs), a market largely dominated by US manufacturers and critical for image processing, as the artificial intelligence (AI) sector evolves. This strategic shift aims to ensure the continued, stable supply of Hikvision's products to its global clientele.
Anticipated Reduction in GPU Dependency

The company acknowledges the US dominance in the GPU market, which is essential for its video surveillance and AI capabilities. However, Hu has stated that Hikvision's reliance on these specific components is expected to diminish with advancements in the AI sector. This suggests a forward-looking approach to mitigate future supply chain vulnerabilities by developing or adopting alternative technologies as the AI landscape matures.
Existing Supplier Relationships and Diversification Efforts

While the specifics of non-US alternatives are not detailed, Hikvision's supply chain includes major international technology firms. Reports indicate that suppliers such as Intel Corp, Nvidia Corp, Ambarella Inc, Western Digital, and Seagate Technology are among those that have provided components to Hikvision. The company's stated preparedness for over a year implies ongoing efforts to diversify its supplier base and explore alternative technological pathways beyond those heavily reliant on US-origin components.
Confidence in Product Supply Stability

Despite the US blacklisting, Hikvision has expressed confidence in its ability to maintain a stable product supply. Board secretary Huang Fanghong has assured clients that the company can guarantee continued product availability. This assurance is underpinned by the belief that the company's current reliance on US parts is minimal, and that its long-term business prospects remain robust even with these geopolitical challenges.

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Can Hikvision truly lessen its reliance on US technology?

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