Nintendo Cartridge Chip Supplier Macronix Scales Back ROM Production as Capacity Shifts to Data-Center Memory

Taiwanese memory-chip maker Macronix is gradually winding down its read-only memory (ROM) business and will stop developing new ROM products. The company is redirecting manufacturing capacity toward NOR flash used in data centers, as well as NAND and eMMC products. The shift could affect the supply chain for physical Nintendo Switch game cards, but it does not mean Nintendo is about to stop selling physical games, nor does it establish that every Switch 2 cartridge will be affected in the same way.

Macronix Chairman and Chief Executive Miin Wu said in comments accompanying the company’s third-quarter results that demand for NOR used in data centers was strong and customers were asking for more capacity. The company is also allocating capacity to NAND, which it considers a higher-growth segment. The Taipei Times reported that ROM accounted for 5% of Macronix’s revenue in the third quarter of 2026, down from 26% in the second quarter of 2025, while ROM sales fell 39% year over year. Macronix said the third quarter would be the last period in which it reports ROM revenue separately.

Why the chipmaker is redirecting capacity to AI data centers

Data centers use several kinds of memory and storage chips. NOR flash is commonly used for server boot-up, firmware, system control and security functions, while NAND and eMMC are used for data storage. As the number of AI servers grows, demand for some memory products has increased, prompting chipmakers to reallocate limited manufacturing capacity.

Macronix’s 2026 capital expenditure plan totals about NT$37.8 billion and is directed toward products including NOR, NAND and eMMC, with no planned investment in ROM capacity. By contrast, ROM has become a smaller business line: it represented just 5% of revenue in the third quarter and sales were down 39% year over year. The return from using wafer capacity for ROM has become less attractive than allocating it to faster-growing memory products.

Does this mean Switch cartridges are going away?

There is no evidence that Nintendo plans to stop producing physical game cards. Macronix is an important ROM supplier for Nintendo, but it is not the only source. Ars Technica reported that Nintendo can also rely on suppliers such as ROHM and LAPIS. Analyst David Gibson has said physical game cards are likely to remain available for some time.

The situation for Switch 2 requires particular caution. Some reports say Switch 2 cartridges use NAND rather than the ROM products Macronix is scaling back. Other analyst commentary has included both Switch and Switch 2 in Macronix’s supply relationship. The reports are not consistent, and Nintendo has not publicly detailed the chip allocation for each console generation. It is therefore too early to conclude that Switch 2 cartridges will be directly affected.

Possible effects on physical-game costs and digital sales

If Nintendo shifts more orders to other suppliers, it could face short-term supply-chain adjustments and changes in procurement costs. The impact may be limited if other manufacturers have sufficient capacity. Whether publishers raise prices for physical editions will depend on chip prices, cartridge specifications, order volumes and Nintendo’s supplier agreements. Macronix’s decision alone does not establish that game prices will rise.

Digital software already accounts for a growing share of Nintendo sales. Figures cited by analyst David Gibson put digital at about 61.5% of Nintendo software sales from April through June 2026, although the share can fluctuate when major physical releases arrive. Macronix’s decision illustrates how AI data-center demand is changing the allocation of memory manufacturing capacity. For players, the first effects are more likely to involve supplier mix and production costs than an immediate disappearance of physical cartridges.