- Published on
Nintendo's biggest ROM chip supplier is bowing out of the business
- Authors
- Name
- DeepHorus
Macronix announced in its third-quarter earnings report that ROM chip production “has reached its end” and that it will begin “gradually decoupling from the game industry,” according to BigGo Finance. The move matters because Nintendo uses Macronix as its “main memory chip maker” for physical game cartridges, analyst David Gibson noted. Those ROM chips power Switch and Switch 2 cartridges.
The shift comes amid broader pressure from the AI industry’s demand for memory and storage. That demand has already affected prices and availability of PC components including RAM, SSDs, and GPUs. Now shortages are squeezing ROM chips used in physical Nintendo game cartridges.
Macronix said ROM production has shrunk 39 percent in the last year and now represents just 5 percent of its business. More lucrative, in-demand chips such as NOR- and NAND-based memory and eMMCs are crowding out that production. The company is prioritizing higher-return products.
Macronix’s production capacity remains stuck at 25,000 12-inch wafers a month. It has $1.2 billion in planned new capacity, but that will take a year or more to spin up. Less profitable ROM chips therefore occupy wafer space that could earn more through other chip types, the company said.
For Nintendo, the announcement raises questions about the supply of physical game cartridges, particularly ahead of the Switch 2. The company did not comment. Tightening ROM availability could complicate cartridge production if Macronix winds down output.
Gibson’s assessment highlights Nintendo’s exposure to a supplier. Macronix’s language signals a strategic retreat rather than a sudden exit. The report did not specify a timeline for the decoupling.
If AI-driven memory demand persists, chipmakers are likely to allocate capacity to higher-margin products. Nintendo may need to adjust cartridge supply plans or qualify additional suppliers. The impact will depend on how quickly Macronix winds down ROM output.
