POS System Manufacturing Disrupted by Global Chip Shortage


Jersey City, NJ – November 3, 2021 – Sintel Systems Global POS, the industry single-source and direct omni-channel point of sale (POS) innovator recognized for its top-grade POS hardware and innovative solutions including QSR drive-thru tech, announced several changes effective 5:00 pm EST November 5, 2021. The changes are due the continued global supply chain disruptions in the semiconductors utilized in Sintel System’s technologies including POS terminals, self-serve kiosks, kitchen display systems (KDS), and smart hand held drive thru solutions. The company projected the shortage to impact production well beyond the second quarter of 2022 not only due to current shortages, but also due to the average 24 week timeline to manufacture semiconductors. This is in line with statements made by both Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Foundry (SF) that the chip shortage will last through 2022. Unfortunately the constraints may worsen even further as the newly publicly traded Global Foundries (GFS) which debuted on Nasdaq in late October hinted. GFS CEO Tom Caulfield said in an interview with CNBC last week, “We can’t make enough. Every day we try to squeeze out as much as we can. I would say we’re over 100%,” and further added that the company’s wafer capacity was sold out through the end of 2023.
This matter of delivering POS systems to clients is further exacerbated by the shipping backlogs with over 80 container vessels (combined 60,000 containers) at the ports of Los Angeles/Long Beach unable to timely offload. The challenges persist after containers headed for east coast are loaded onto trains headed for one of the country’s largest railyards in Chicago spanning 500 football fields. Chicago railway being the largest international land gateway recently experienced a 25-mile train back up leaving containers headed for the east coast severely delayed.
Sintel Systems Director of Operations commented, “We need to be prudent and prioritize where our solutions are going at this time of unprecedented demand for systems. Our focus is to ensure that our existing clients are best served. This includes holding hardware on reserve for potential upgrades for our existing clients and new openings of our franchise clients.” According to the company, the last shipment of hardware for 2021 is currently enroute to port of Los Angeles for transfer to New Jersey via train. According to the company, purchase orders placed after November 5, 2021 5:00 pm EST can expect a delivery no sooner than 120 days. The matter will remain fluid and tentative delivery dates will only be provided on executed orders. Furthermore the following will take effect:
- All promotional offers and discounts will be suspended after November 5, 2021.
- All quotes and unexecuted purchased orders generated prior to November 5, 2021 will expire at 5:00 pm EST.
- Free shipping will be discontinued due to FedEx and UPS raising their rates at the fastest pace in decade. Shipping rates quoted at the time of purchase may differ with actual cost at the time of shipping.
- Continued stoppage of hardware-only sales to third parties until at least July 1, 2022.
Sintel Systems also announced that its manufacturing facilities in Taiwan and South Korea have both suspended making POS systems and other related hardware until January 15, 2022. “We are fortunate to have a great deal of control over our supply chain and have been able to meet the explosive demand for our solutions in all of 2021, but we will need to be prudent to where our solutions will end up in the next six to eight months,” commented Sintel Systems Director of Operations.
