Chun: Slot Suppliers Face Microchip Shortage

Jay Chun (l.), the president of the association representing Macau equipment manufacturers, says their biggest challenge is a shortage of microchips owing to supply chain issues caused by Covid-19.

Chun: Slot Suppliers Face Microchip Shortage

Macau gaming manufacturers are facing a critical shortage of microchips caused by supply-chain issues surrounding the global Covid-19 pandemic, according to the head of their lobbying arm.

Jay Chun, president of the Macau Gaming Equipment Manufacturers Association, noted the microchip shortage in an interview with GGRAsia. “The biggest problem (for slot manufacturers) comes from delay in component supply, due to a global chip shortage,” said Chun, who also is chairman of Paradise Entertainment, which manufactures equipment under the LT Game brand.

Chun said his company is experiencing months of delay in the delivery of microchips, which run the logic board and bill validators on slot machines. “Various sectors are competing for chips from a limited (supply) capacity,” he told GGRAsia. “Many sectors—not only us—need chips for their production. The automotive industry, for instance, is a sector that has a very robust demand for chips.”

Chun added that a “big problem” for slot-makers lies in gaming’s regulatory structure. “After you gather every component, you need to have it certified; and after it is certified, you cannot change (the components), which means, you cannot use one type of chip today and another the next day,” he said.