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Home › MarketWatch › The US added Hikvision to the entity list, causing Ambarella shares to fall
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The US added Hikvision to the entity list, causing Ambarella shares to fall

SemiMediaEdit
October 8, 2019

Yesterday, the United States listed 28 Chinese surveillance and artificial intelligence industry-related companies on the entity list, including Hikvision, China's largest producer of surveillance products, which caused the company's supplier Ambarella to fall 12%.

As a supplier of Hikvision, Ambarella provides chip and video processing solutions for Hikvision. Ambarella said in the last quarter's financial report that the trade relationship between the United States and China has become increasingly tense in the past two years, which has also made the business environment full of uncertainty. Although it has not been significantly affected at present, if the business with customers is restricted, its future performance may be affected.

Hikvision said that it did not agree with the US actions and had already contacted the US government, hoping to solve the problem. Punishing Hikvision will hinder communication between global companies and the US government, and will also hurt Hikvision's US partners, which will have a negative impact on the US economy.

In addition to Hikvision, China's artificial intelligence companies MEGVII and Sensetime have also been added to the entity list. According to reports, the full list is expected to be published in the Federal Register on Wednesday.

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