The global semiconductor chip shortage has been long-lasting and the impact extends well beyond the production of goods like cars, smartphones and the latest gaming console. Now it is also affecting the production of credit cards, which means bank customers in need of a new card may have to wait months to receive one.
Typically when someone needs to replace a credit or debit card, a bank would have this issue resolved in about seven to 10 business days, but now the wait time could reportedly be as long as six to eight weeks, according to a report by NPR.
The chips in plastic cards have become essential to protecting key credit card information, but it's the same technology used for many other goods. So, when the COVID-19 pandemic severely impacted the global supply chain, card issuers, like many other companies, had to scramble.
It's possible that the chip shortage may be drawing down, with some experts saying the worst of it has already passed. Last month, Peter Vosser, chairman of ABB, an electrification and automation firm, told CNBC that the CHIPS Act, which Congress passed last summer to create competition in the semiconductor chip industry, will help avoid future disruptions like the one the economy is currently facing.
"But if I look today at it, I think it's now being sorted out. I think the global growth slowdown has helped on this as well, and now for the future I'm quite optimistic," he said.
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