Global chip scarcity threatens payment card supply chains

The crisis centers on a manufacturing bottleneck where 28nm and larger chips—the standard for payment technology—compete for space with the booming artificial intelligence sector. While payment cards do not require cutting-edge processing power, they rely on the same foundries now redirected toward more lucrative AI applications. Simultaneously, trade route restrictions and rising costs for precious metals and PVC are complicating procurement for card producers.

To prevent a repeat of the post-pandemic shortages, the association is pushing for a shift in how card issuers operate. Manufacturers are currently forced to qualify alternative suppliers, a resource-heavy process that demands significant lead time. The industry body now urges issuers to abandon short-term purchasing in favor of precise, long-term volume forecasts and early alignment on frame orders. This proactive communication is intended to help manufacturers lock in production capacity before foundry slots vanish.