Taiwan’s Macronix, which makes the ROM chips used in Nintendo Switch and Switch 2 game cards, is gradually phasing out its ROM production. The company will develop no new ROM products, and the third quarter of 2026 will be the last quarter in which it reports ROM sales separately.
According to reports Oyun Günlüğü obtained from Tom’s Hardware and Instant Gaming News, the news was first shared by MST Financial analyst David Gibson. Based on figures Gibson shared, ROM accounted for just 5% of Macronix’s sales in the third quarter of this year, down from 26% a year earlier. The company is shifting its manufacturing capacity to the NOR and NAND flash chips demanded by AI data centers, and its entire NT$37.8 billion capital expenditure is allocated to NOR and NAND flash. According to the Taipei Times, NT$22 billion of that budget will go toward expanding manufacturing capacity, with another NT$15.8 billion going to NAND flash used in eMMC and 3D NAND.
Nintendo gets its chips through MegaChips
Nintendo does not buy ROM chips directly from Macronix. Instead, fabless chip designer MegaChips designs the chips to Nintendo’s specifications and outsources their manufacturing to Macronix. According to MegaChips’ 2022 company report, Nintendo accounted for 87.8% of its sales, while Macronix accounted for 67.8% of its outsourced manufacturing purchases. As a result, MegaChips is expected to be hit hardest by the decision.
Physical game cards will continue for now
Macronix’s exit does not mean game cards are going away. ROHM group companies ROHM Semiconductor and LAPIS Semiconductor continue to supply ROM chips to Nintendo, and Gibson noted that since Macronix is not the only ROM source, physical cards will likely carry on for some time. However, having one less supplier could lead to higher prices for physical games, wider use of Game-Key Cards and a greater shift toward digital sales. According to Gibson, Nintendo’s digital margins have already been slowly rising.
