Why Is There an RFID Chip Shortage?

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Ask The ExpertsCategory: QuestionsWhy Is There an RFID Chip Shortage?
David asked 4 months ago
Our supplier for RFID tags is saying we need to switch tags, as there is a shortage of labels, tags or something. Can you verify this? What is the specific shortage?

—David

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David,

There is a global shortage of microchips of all kinds, and RFID chips are no exception. The semiconductor fabrication plants are backlogged and have been unable to produce enough chips to meet the demand. RFID Journal has tried several times to write about this issue, but the chip providers and the companies that make inlays do not want to discuss it, perhaps for fear of scaring off potential customers.

It is not clear when the shortage will be alleviated. My guess is that as the COVID-19 pandemic comes under control, or at least becomes more manageable, chip plants will expand their capacity and the supply of chips will ramp up to meet demand. I think this could happen by the end of this year or sooner.

Mark Roberti
Founder and Editor
RFID Journal

 

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