Hauwei also unveiled new smartphones in recent weeks that use advanced chips, which analysts say are domestically made.
"These surveillance chips are relatively easy to manufacture compared to smartphone processors," said the source familiar with the surveillance camera industry's supply chain, adding that HiSilicon's return would shake up the market.
A key factor is that the company appears to have worked around U.S. restrictions on chip design software.
Huawei has not commented on the phone's 5G capabilities or how it produced the advanced chip.
The United States has no evidence that Huawei can produce smartphones with advanced chips in large volumes, U.S. Commerce Secretary Gina Raimondo said on Tuesday.
Persons:
Hauwei, Frost, Sullivan, HiSilicon, Taiwan's TSMC, Gina Raimondo, Dan Hutcheson, Shanghai Newsrooms, Fanny Potkin, Gerry Doyle
Organizations:
Huawei Technologies, Huawei, Securities, Novatek Microelectronics Corp, Semiconductor Manufacturing International Corp, HK, Kirin, United, . Commerce, Cadence Design Systems, Synopsys Inc, Siemens, Thomson
Locations:
BEIJING, SHANGHAI, U.S, Kirin, China, United States, Beijing, Shanghai, Singapore