Macronix to exit ROM business, impacting Nintendo cartridge supply

Macronix, a semiconductor and memory manufacturer, is phasing out its ROM production, according to reporting by the Taipei Times. The decision was confirmed by Macronix CEO Miin Wu, who stated that the company is allocating capacity to NAND and that "customers are chasing us for more capacity, demanding that we deliver more NOR flash solutions for data centers."

Financial shifts at Macronix

Macronix reported a record-high net profit of $337 million for Q3 2026. However, the company's ROM business has seen a significant decline. According to analyst David Gibson, ROM products accounted for just 5% of Macronix's overall revenue for Q3 2026, down from 26% during the same period last year.

As part of this transition, Macronix will no longer report ROM sales as a separate segment in future financial releases. The company is shifting its manufacturing focus toward NOR and eMMC memory chips. According to Gibson, none of the company's NT$37.8 billion in new capital spending will be directed toward ROM production.

Impact on Nintendo cartridges

Macronix is a key supplier of the ROM chips used in Nintendo Switch cartridges. There are conflicting reports regarding the impact on the Nintendo Switch 2; while some reports suggest Macronix supplies ROM for both Switch generations, others, including Nintendo Everything, report that Switch 2 cards may come primarily from another supplier, ROHM.

Industry analyst David Gibson noted that while Macronix is not Nintendo's only supplier, the move could put pressure on the supply chain. This may lead to higher prices for physical games or a shift toward "Game-Key Cards," which contain a download key rather than the complete game data.

Trends in digital sales

This shift occurs as digital software sales continue to grow across the gaming industry:

• Nintendo: Digital formats accounted for approximately 61.5% of Nintendo's software sales between April and June.
• Sony (PS5): Digital downloads make up around 85% of software sales.
• Microsoft (Xbox): 96% of software sales are digital on Xbox platforms.

Nintendo told The Verge that it has no plans to ditch physical games. The company's July to September financial results are expected to be released on November 5.

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Sources

• engadget.com: Nintendo's Main Switch Cartridge Supplier Is Leaving The ROM Business
• nintendolife.com: Switch Cartridges Under Threat As Key ROM Manufacturer Exits Business | Nintendo Life
• economictimes.indiatimes.com: Nintendo Switch 2 cartridge maker Macronix exits ROM business: Why it's bad news for physical game lovers - The Economic Times
• eurogamer.net: One of Nintendo's Switch and Switch 2 cartridge manufacturers is exiting the business, which could make physical games more expensive | Eurogamer.net
• shiftdelete.net: Nintendo Switch Cartridges Lose Macronix as ROM Supplier
• twistedvoxel.com: Nintendo Switch 2 Game Card Supplier Macronix Is Exiting the ROM Business as Digital Sales Grow

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.