Trezor, a popular hardware wallet manufacturer, has announced that it will produce its own chip wrapper, a key component of its Trezor Model T wallet, to streamline production and reduce lead times in the supply chain. By incorporating chip manufacturing in-house, Trezor can be more agile and adaptable to market conditions, reducing its reliance on third-party vendors and eliminating shipment delays caused by component supply and demand.

The move is important for Trezor as it allows the company to have greater control over the supply chain and quickly respond to factors such as geopolitical disruption and labor shortages caused by the COVID-19 pandemic. Previously, the company was exposed to third-party sourcing vulnerabilities due to factors such as these, which could cause delays in the shipment of finished goods and expose consumers to price fluctuations based on component supply and demand.

The move to in-house chip manufacturing also gives Trezor more design freedom for future products, allowing the wallet provider to build the hardware wallet devices from scratch. Additionally, the move will allow Trezor to quickly respond to market conditions and meet the growing demand for its products.

The decision to produce its own chip packaging comes a year after Tropic Square, a startup operated by Trezor’s parent company Satoshi Labs, released a new open-source chip called TROPIC01, which provides cryptographic key generation, encryption , signature and authentication for users. Trezor is expected to become Tropic Square’s first customer for the product, which provides a unique business model that can be applied in rare cases.

According to Štěpán Uherik, Trezor’s CFO, the company has collaborated with its partner STMicroelectronics to identify areas where they can take control and make the manufacturing process as agile as possible. By unpacking the process, Trezor has managed to streamline the production of its wallets and meet the growing demand for its products.

Trezor’s decision to produce its own chip wrapper is a strategic move that has significant implications for the hardware wallet industry. It allows companies to have greater control over their supply chain, respond quickly to market conditions, and meet the growing demand for hardware wallets.

In conclusion, by producing its own chip wrapper, Trezor is speeding up the production of hardware wallets and ensuring that it can meet the demand for its products. The move provides greater control over the supply chain, reduces delivery times and eliminates shipment delays caused by the supply and demand of components. It also provides more design freedom for future products and allows Trezor to respond quickly to market conditions. Overall, it is a strategic move that positions Trezor as a leader in the hardware wallet industry.