Macronix phases out cartridge ROM production to prioritize data center chips

Taiwanese memory maker Macronix announced it is winding down its ROM chip production, cutting off a key component line used in Nintendo Switch cartridges. Macronix reported a record-high net profit of $337 million for the third quarter of 2026, but ROM sales fell 39 percent year over year and now generate just five percent of the company's revenue, compared to 26 percent last year. The supplier will reallocate manufacturing to meet surging artificial intelligence and data center demand for NOR and NAND flash memory. [1][2][3]

The exit leaves Nintendo with fewer manufacturing avenues for physical game media. Industry analyst David Gibson notes that Macronix will report ROM sales separately for the last time this quarter, though Nintendo still sources parts from suppliers such as Rohm Co. Design partner MegaChips could feel the brunt of the shift, as Nintendo accounted for 87.8 percent of its sales and Macronix accounted for 67.8 percent of its outsourced manufacturing purchases in a 2022 filing. [2][5]

The change adds fresh pressure to physical games as memory costs rise. Analysts suggest publishers may turn increasingly to digital downloads or Game-Key Cards, which contain only a software download code inside a game case. While Nintendo previously stated it has no plans to drop physical formats, digital products already accounted for 61.5 percent of its software sales, following a broader industry shift that has seen competitors like Sony announce plans to phase out discs by 2028. [1][2][5]