With millions of microchips needed annually to equip smart chip payment cards, ABA yesterday told the Commerce Department that a “whole-of-government approach” is needed to weather the expected shortages in the global chip supply.

Large numbers of chip cards need to be replaced each year as they expire, ABA said, adding that without a sufficient supply of chips, some consumers and businesses may not receive a timely replacement of an expired, lost or stolen payment card.

ABA said the federal government should adopt an approach that treats all industries that rely on semiconductors equitably, “rather than prioritiz[ing] access by certain industries to domestic and foreign chip suppliers and manufacturers.”

Over the longer term, ABA said that Congress should foster growth in America’s domestic semiconductor production capability to ensure that all stakeholders can access a reliable supply of chips. Read more.