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Worldwide Chip Shortage Affecting the Smart Card Industry

This entry was posted on 25th February 2021.

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As you may be aware, there is a global shortage of chips in the supply-chain. This is having a huge impact on lead-times and cost across a variety of industries, including ours. Popular products like MIFARE Classic® 1k and MIFARE Ultralight® are likely to be subject to a lead-time of at least 10 weeks. Other key products like MIFARE PLUS®, MIFARE® DESFire® and a variety of Java Cards are being forecast at up to 26 weeks for chip supply.

However, a sizable advantage of working with Universal is that we own part of a supply-chain company based in China, so have already placed substantial orders for existing and future chip modules. This means that we are well positioned to minimise cost increases and lead-time implications in the short to medium term. However, to protect against this and attempt to minimise any issues to your business, we still strongly recommend that you provide us with firm orders for any requirements you have within the next 10-26 weeks+, depending on the product required.

Readers are also affected by this issue. However, as we are the largest supplier of OMNIKEY® products in EMEA, we have stock cover for the year for ‘normal’ sales levels. It’s the same for Identiv too. Anything outside of the norm, we will do all we can to satisfy any demand for these products.

This issue is not linked to Brexit, it is a global problem caused primarily by the surge in demand as a consequence of the global pandemic and is affecting all suppliers and customers alike. It is hoped that normality will return before the end of the year, but right now there is no guarantee.

Please be confident in the knowledge that we will utilise our extensive supply chain relationships and knowledge to minimise these impacts on you, our valued customers.

Please speak with your account manager today if you have any questions or wish to discuss your requirements in more detail - our experienced and friendly team are ready and waiting to help.

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