Macronix gradually shutting down Nintendo Switch cartridge ROM business, pivoting to AI data center storage

Macronix Gradually Shuts Down ROM Business, Pivots to AI Storage

Source: Semiconductor Horizons Published: 2026-11-05 14:50 Storage Consumer Electronics Generate Poster This type of ROM chip is used in Nintendo Switch game console cartridges.

According to reports, Macronix Electronics, one of the core ROM chip suppliers for Nintendo Switch and Switch 2 game cartridges, is gradually shutting down its ROM business and shifting to producing NOR and NAND flash memory chips for data centers. Storage chip prices were already continuing to rise, and this change by Macronix may force Nintendo to raise game cartridge prices, launch more game key cards, or further push digital games.

David Gibson of MST Financial posted on social media: "Nintendo's main storage chip manufacturer is about to exit Switch-related business. Macronix Electronics, which supplies ROM chips for Switch 1 and Switch 2 game cartridges, is gradually exiting this business. It will no longer launch new ROM products, and this year's third quarter will be the last quarter in which it separately discloses ROM business revenue."

He mentioned that Macronix's ROM business revenue share had already fallen to 5% in Q3 this year, compared with 26% in the same period last year. Gibson also said that Macronix's NT$37.8 billion in capital expenditure will all be directed to NOR and NAND flash memory, with no further investment in ROM, as the company shifts capacity to meet AI market demand.

This news was also corroborated in reports by Taiwanese media. Previously, Macronix Chairman Miin Wu revealed at an earnings conference that "demand for NOR flash memory in the data center sector is very strong, and customers keep placing follow-up orders with us, hoping we can provide more NOR flash solutions for data centers." He said that Macronix's NOR flash business will focus on high-value markets, including space communications, automotive, industrial, and medical equipment. At the same time, Miin Wu confirmed that Macronix is gradually exiting ROM chip production. This type of ROM chip is used in Nintendo Switch game console cartridges.

After major suppliers such as Samsung Electronics exited, Macronix Electronics' eMMC NAND business has grown several times over the past year, and the company is optimistic about the growth potential of new 3D NAND chips next year. Miin Wu said: "This capacity allocation is not because NOR flash demand is weakening. We are directing capacity toward the high-growth NAND track to support Macronix's long-term development."

At the same time, Macronix Electronics is also actively expanding production. The first phase of NT$22 billion in capital expenditure corresponds to new capacity expected to begin production in the second half of next year. Another NT$15.8 billion expansion investment, affected by delays in the delivery of manufacturing equipment, will not release capacity until 2028. The new capacity will be used to produce NAND flash memory for embedded multimedia cards (eMMC) and 3D NAND chips.

After Macronix Electronics shuts down its ROM business, what should Nintendo do next? Gibson's view is that Nintendo can improve digital business profits through more game key cards and pure digital sales. But Macronix is not Nintendo's only ROM chip supplier, so "physical cartridges will most likely continue to exist for some time." He also mentioned that digital business profit margins have been slowly improving, and quarterly data will fluctuate due to the release of major physical games.

Rohm Semiconductor and Lapis Semiconductor, both under the Rohm Group, are still supplying ROM chips to Nintendo, so in the short term it is unlikely that Nintendo will fully shift to a pure digital model like Sony and Microsoft's recent plans. But with one fewer supplier, Nintendo may raise the prices of physical game cartridges.

However, in this matter, the party most affected besides players may be fabless chip designer MegaChips. Nintendo does not directly purchase ROM chips from Macronix: MegaChips designs ROM chips according to Nintendo's requirements, has no manufacturing capability itself, and then commissions Macronix to manufacture them. MegaChips' 2022 financial report showed that Nintendo business accounted for 87.8% of its revenue, and Macronix accounted for 67.8% of its foundry procurement. That year's financial report also warned: if Macronix stops ROM chip foundry production, "MegaChips' operating performance may be impacted." The document also said at the time that the risk had not yet materialized; now, that risk has materialized. It is currently unclear whether MegaChips has a corresponding backup plan. However, Macronix and MegaChips most likely communicated about the production halt plan in advance, giving MegaChips some time to find another foundry.

This article is reproduced from media reports or online platforms and represents the author's personal stance or views. Our republication is solely for sharing and does not mean we approve of or endorse it. If the source attribution is incorrect or your lawful rights and interests are infringed, please contact customer service promptly, and as a neutral platform service provider we will promptly correct, delete, or handle it in accordance with the law. Comments: No user comments yet. Latest News More Related Recommendations

MediaTek Recruits Intel 37-Year Packaging and Testing Veteran, Pushes into Data Center ASIC 2026-11-05 17:00

Infineon's First RISC-V Automotive MCU Is Coming 2026-11-05 16:57

Huawei Releases First Computer with 100% Domestic Content 2026-11-05 16:32