That "chip" is a USB E-Marker chip. It's supposed to simplify connectivity by comparing the requirements of the source and the sink, as well as the cable's capabilities, to ensure power and data is safely and effectively transmitted over the cable. It may be that the combination of requirements and capabilities of the card reader, the Mac and the cable don't jive or it could also be the cable sucks which is often the case. Could also be the Mac, they do their own thing over there (which isn't always a bad thing). Stick with reputable brands such as Anker, Cable Matters, OWC, even Apple. I have seen lots of issues with other, cheap cables. And if you deal with USB often you may want to consider getting a USB tester like the FNIRSI FNB58. This device will read the E-Marker chips in cables and display their capabilities as well as those of the source and sink. Good tool to have if you interface with USB on the regular.?
JSpence78