Nintendo Switch ROM chip supplier Macronix is exiting the gaming business

The global technology hardware market is facing ongoing adjustments as memory and storage demands from the broader tech sector create ripples across industries. Now, supply constraints are directly impacting the components used for physical Nintendo console games.

• Chip maker Macronix announces the end of ROM chip production for the gaming industry
• The company is pivoting towards more lucrative NOR, NAND memory, and eMMC products
• Nintendo may need to rely on alternative suppliers like Rohm and Lapis Semiconductor

Macronix Shifts Focus Away From ROM Production

According to a third-quarter earnings report highlighted by Taiwanese media, chip manufacturer Macronix has reached the end of its ROM chip production cycle and will gradually decouple from the gaming industry. Over the past year, ROM production dropped by 39 percent, now representing just 5 percent of the company's total business operations.

With manufacturing capacity capped at 25,000 12-inch wafers per month and new multi-billion dollar facilities taking over a year to deploy, less profitable ROM components are being squeezed out. The company is prioritizing higher-demand and more lucrative memory solutions, such as NOR and NAND flash, driven largely by broader market shifts.

Implications for Nintendo and Physical Game Cartridges

Analyst David Gibson points out that Macronix has served as Nintendo's main memory chip maker for physical game cartridges. Despite speculation, Nintendo confirmed last month that it has no immediate plans to abandon physical game cartridges for its current hardware or the upcoming Switch 2.

However, as Nintendo is forced to rely on alternative suppliers like Rohm and Lapis Semiconductor for its remaining ROM chip needs, the cost of manufacturing these cartridges could increase. This shift might trickle down to publishers and consumers purchasing physical editions.

Pricing Trends and Digital Sales Growth

Physical cartridge pricing has already seen subtle pressures. Earlier this year, Nintendo priced certain physical titles higher than their digital counterparts, while smaller cartridge sizes for upcoming hardware have previously been cited as a way to curb production expenses.

On the other hand, digital software sales accounted for 61.5 percent of Nintendo's business in the second calendar quarter of 2026, showing a slight year-over-year increase. Should this digital adoption trend persist, declining demand for physical ROM cartridges could naturally offset future cost pressures.