The spread of core shortage to the security industry highlights the importance of supply chain security in the security industry, highlighting the opportunity for domestic chip manufacturers.

The shortage of security chips has led to an increase in the price of some security products and a general extension of the delivery period. According to a report on March 23, due to the shortage of security chips, the delivery cycle of security products has generally been extended by about half a month, the delivery time of some products has been extended to nine months, and downstream agents have appropriately increased the hoarding of goods.

In addition, the chip emergency led to a 40% increase in the price of security cameras. A supplier said that in September last year, the commonly used camera with 2 million pixels was more than 140yuan, but now it has risen to more than 210yuan.

There is a mismatch between supply and demand.

The main participants in the domestic security chip market are Hesse, Fuhanwei, Xingchen Technology, Beijing Junzheng, Lianyong Technology, Ruixin Micro, Anba and other enterprises. Guoyuan Securities said that Hayes occupies about 70% of the security chip market, after withdrawing from the market will form a huge supply and demand scissors gap.

At present, the gap between supply and demand in the security chip market is reflected in the supply gap in the short term. According to industry insiders' prediction, the shortage of chips in the security industry may continue in the short term, and panic reserves are also contributing to this wave of shortage. In the medium and long term, the innovation of security chips shows an accelerating trend in the era of artificial intelligence.

With the emergence of novel coronavirus vaccine, the global epidemic is expected to gradually ease, and some security projects postponed in 2020 are expected to meet the landing tide in 2021. Since the first quarter of this year, downstream security system manufacturers have opened a tide of chip stock, and the demand for security chips has obviously recovered.

On the other hand, "Ping an Village" has been written into the No. 1 document of the Central Committee for four consecutive years, and the traditional security needs have remained robust. The prosperity trend of the security chip industry continues to be upward.

Supply chain security becomes the key leader, the strong is Hengqiang.

At present, the security system market presents a pattern of Haikang and Dahua oligopoly. One of the competitive elements of Haikang, Dahua and Huawei security system business is the competition of chip supply chain. The crisis of lack of core highlights the importance of supply chain security.

Guoyuan Securities said that supply chain security has three connotations: to ensure a sustained and stable supply of chips needed for business, to form a differentiated competitive advantage on the chip side, and to fully cooperate with the intelligent upgrading of security.

At present, a number of security enterprises have disclosed their 2020 performance KuaiBao or annual report, among which Haikang Weiwei and Dahua shares remain sound, while small and medium-sized enterprises continue to be under pressure. Citic Securities believes that the leading companies are expected to further increase their share by integrating upstream and downstream resources in the pressure-bearing phase of the industry.

Haikang cooperates closely with Fuhan Micro, while Dahua cooperates closely with Xingchen Technology. Under the trend of gradual penetration of artificial intelligence security applications, system manufacturers need more and more chip-side innovation, and chip enterprises need to participate in collaborative research and development in the product definition stage several years in advance. the cooperation between downstream system manufacturers and chip manufacturers will become closer and closer.