Macronix Reportedly Quits Nintendo ROM Chip Business for AI Data Centers

Macronix, one of Nintendo's key ROM chip suppliers for Switch and Switch 2 game cartridges, is reportedly shutting down its ROM business to focus on NOR and NAND flash chips for data centers, according to multiple reports. Storage is already becoming expensive, and the move may force Nintendo to increase cartridge prices, produce more Game-Key cards, or lean more toward digital purchases.

Macronix shift reported

MST Financial analyst David Gibson reported on X that Macronix makes the ROM chips in Switch 1 and Switch 2 game memory cards and is phasing out that business. He said there will be no new ROM products and that Q3 is the last quarter it reports ROM sales separately. The post is dated November 4, 2026.

Gibson said Macronix ROM sales in Q3 of this year dropped to 5%, compared with 26% last year. He also said NT$37.8 billion in capital expenditure is allocated to NOR and NAND Flash, leaving none for ROM, as the company shifts manufacturing capacity to supply AI needs. Taipei Times corroborated the report, saying Macronix is gradually phasing out ROM production and that its capital expenditure is split into two phases: NT$22 billion for expanding manufacturing capacity, followed by NT$15.8 billion for NAND flash used in eMMCs and 3D NAND.

Impact on Nintendo and physical games

Gibson expects Nintendo's digital margins to grow through more Game-Key Cards or digital-only sales, but said physical cards will likely carry on for some time because Macronix is not the only source of ROM chips. He also said digital margins have been slowly rising, with numbers fluctuating depending on the quarter due to major physical game launches.

ROHM group companies ROHM Semiconductor and LAPIS Semiconductor still supply ROM chips to Nintendo, so it is unlikely Nintendo will go digital-only in the near future like Sony and Microsoft's recent plans. With one less supplier, however, Nintendo may be forced to increase prices on physical games.

MegaChips exposure

Nintendo does not buy ROM chips from Macronix directly. MegaChips designs the ROM chips according to Nintendo's needs and, having no manufacturing capacity, outsources production to Macronix. MegaChips' 2022 company report states that Nintendo accounted for 87.8% of its sales, while Macronix accounted for 67.8% of its outsourced manufacturing purchases.

The report also flags a risk to MegaChips' operating results tied to Macronix's ROM chip manufacturing. The 2022 document says there was no sign the risk would become apparent, but the risk has now become real. Macronix and MegaChips have likely discussed the plans and given MegaChips time to find another manufacturer before the ROM business ends.

Sources: Tom's Hardware