Trezor Producing Chips for Wallets to Optimize Supply Cycle
• Trezor announced that they are now producing their own silicon chips to optimize production and reduce lead times in the supply cycle.
• The move aims to protect customers from price fluctuations based on component supply and demand, while also responding quickly to demand-triggering events like the FTX collapse.
• Trezor does not expect its wallets‘ prices to be affected by this change.
Trezor Accelerates Chip Production
Hardware wallet manufacturer Trezor has announced that they will start facilitating the production of its key component, the chip wrapper, in its flagship product — the Trezor Model T. This move is intended to significantly optimize Trezor wallets‘ production, reducing lead times in the supply cycle from two years to several months.
Protects Consumers From Market Fluctuations
The new chip optimization will also eliminate delays in shipping finished products and protect consumers from exposure to price fluctuations based on component supply and demand. Demand for Trezor wallets spiked by at least 300% after the FTX collapse in November 2022 as crypto investors rushed to move their crypto holdings from centralized exchanges.
Specifications For New Chips
The new chips will be implemented exclusively for the firm’s Trezor T model, while other Trezor wallets will remain unaffected. A spokesperson for Trezor noted that „Model One“ has a different chip unaffected by the chip crisis“. It is planned that future models can all be equipped with the new chip.
Price Unaffected By Change
Trezor does not expect that the price of new wallets will be affected due to this change as it was noted that „the peak in chip prices is apparently ending“ so „our own chips are more or less the same price as mass-produced ones“. The significant benefit is that it allows them to handle any future potential chip shortage without increasing prices or delays in delivery.
Overall, this decision by Trezor should help reduce lead times and protect consumers from market fluctuations when sourcing components for their hardware wallets. They do not anticipate any changes in wallet prices either which should make customers feel more secure when purchasing their products.