Hacker once claimed that he had the encryptor chip and would allow the Cybersquad to have it if they could catch enough gleamers to power up the Grim Wreaker 2, where the chip was contained. The Cybersquad managed to win Hacker's challenge (even though Hacker cheated in multiple ways), but the chip turned out to be a cheap fake.
Dr. Marbles finally managed to find the real one chip, but Hacker captured him and reprogrammed the chip to rewrite Motherboard with his own digital image. He then placed the chip up for auction and tricked the Cybersquad into buying it and placing it into Motherboard for Hacker. Motherboard's file was then compressed inside the Encryptor chip, and Hacker planned to despose of it into a blackhole, thus destroying his enemy. However, Hacker's former partner Wicked had managed to spend all of Hacker's money, so he was unable to pay the fee required for disposal into a black hole. By this time, the Cybersquad caught up with Hacker, and he was forced to toss the chip while flying over a volcano. In an act of bravery, Digit plunged after the chip, and caught it just before it was destroyed, thus saving Motherboard. However, in "The Snelfu Snafu: Part 2", the chip was destroyed after Dr. Marbles rebooted Motherboard from her zipped file in it, although he, Slider, and the Cybersquad decided it was worth it.
In the Season 10 episode, "Fit To Be Heroes," the Cybersquad and their new friend, Scanner, found a template to the encryptor chip, which requires the following ingredients: the sands of time from on top of the Great Pyramid of Pyramidia, 7 drops of spring water from the Glowing Glacier of Penguia, a clear crystal from the Crystal Cave, and the first ray of sunlight from a sunrise in Solaria. However, The Hacker got wind of the words, "encryptor chip" when Jackie and Scanner were at Pyramidia, which lead to a chase to Penguia (with Matt revealing the plan after taking back the phial of spring water that The Hacker picked up) and Solaria (where he stole briefly the jar of the first ray of sunlight, only for Scanner being able to take it back). After mixing the ingredients together, the Cybersquad installed the finished product into Motherboard, only for it to overload on them because the recipe is for an early model (which Digit revealed that Dr. Marbles had multiple tries in creating the final product of the encryptor chip). Thus the chase for the encryptor chip ended, and there is still the question of how Dr. Marbles proposes to cure Motherboard.