Macronix, one of the main suppliers of ROM chips for Nintendo Switch and Switch 2 cartridges, has announced it is ending that production line. The decision could pressure physical media costs in the coming years.
What happened?
During its third-quarter 2026 earnings, the Taiwanese company stated that ROM chip production “has reached its end” and that it will begin gradually decoupling from the game industry. Analyst David Gibson (MST Financial) noted that Macronix is Nintendo’s main ROM memory supplier for cartridges.
ROM chips represented only 5% of Macronix’s revenue in the quarter (down 39% year-over-year). Manufacturing capacity is being redirected to NOR, NAND and eMMC memory, which have higher demand and margins driven by data-center and AI needs.
Why it matters
Switch and Switch 2 cartridges rely on ROM chips to store the game. With a major supplier exiting, Nintendo and publishers will need to turn to other manufacturers (such as Rohm and Lapis Semiconductor). This could raise the production cost of physical cartridges.
Nintendo has recently said it has no plans to abandon cartridges in the near term. However, it already charges more for some physical Switch 2 editions and has expanded the use of Game-Key Cards. Analysts expect cost pressure could accelerate that trend.
Market context
The memory shortage driven by AI demand has already affected RAM, SSD and GPU prices. It is now reaching console cartridges. In Q2 2026, digital sales accounted for roughly 61.5% of Nintendo’s software business. If physical media becomes more expensive, the digital share is likely to grow further.
There is no immediate shortage or price-increase announcement from Nintendo. Macronix’s exit is gradual.
By Grok
