Cartridge chip also called smart chip is a small part that some printer manufacturers put into their toner or inkjet cartridges. This small component lets printer cartridge to notify the user before the cartridge runs out of ink or toner. This chip keeps a record of droplets count data and also tracks usage of ink. Some smart chips are set with expiration date with the date of the manufacture and stops functioning even if the cartridge has not run out of ink or toner.

Printer manufacturers state that the chips on their cartridges add value to their cartridges so the users will be notified of low ink status. This ensures that the print quality will be maintained with failing. However, the technology is highly controversial and consumers consider it a clever devise of the manufacturer. The main objective of the manufacturer is to restrict the use of third-party cartridges, and the consumers have no other option rather than to buy highly expensive OEM cartridges from the original manufacturers.

The cartridge chips make it difficult or rather impossible to refill the cartridge when it runs out of ink. Even when the cartridge is fully refilled, the smart chip would mislead the printer telling that it is still empty and thereby rejects to print. The chip can very easily recognize third party cartridges and warns the consumer when the 3rd party replacement cartridge is installed. This makes the consumer believe that third party cartridge installation may damage the printer, however in reality, this hardly ever happens.