Nintendo ROM chip supplier Macronix stops focusing on chips for AI data centers, reports show – Game-key cards may rise as large game storage chips become more expensive
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The death of physical games could be getting closer as Macronix, one of Nintendo’s key ROM chip suppliers for Switch and Switch 2 game cartridges, is reportedly shutting down its ROM business to focus on manufacturing NOR and NAND flash chips to supply data centers, multiple reports claim. Storage is already expensive, and Macronix’s move may force Nintendo to raise cartridge prices, produce more game-key cards, or focus more on digital purchases.
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“Nintendo’s main memory chip manufacturer is leaving the Switch business,” MST Financial David Gibson reports on X. “Macronix, which makes the ROM chips in Switch 1 and Switch 2 game memory cards, is phasing out that business.
1/4 Nintendo’s main memory chip maker leaves the Switch business Macronix, which makes the ROM chips in the Switch 1 and Switch 2 game memory cards, is phasing out that business. There are no new ROM products, and Q3 is the last quarter it reports ROM sales separately.November 4, 2026
Gibson expects Nintendo’s digital margins to grow through more game-key cards or digital-only sales, but since Macronix is not the only source of ROM chips, “physical cards will likely continue for some time.” Gibson continues to report that digital margins have been gradually increasing, with numbers fluctuating depending on the quarter due to large physical game launches.
3/4 My View: Macronix isn’t Nintendo’s only game memory card maker, so physical cards will likely continue for a while. But at the edge digital will grow, through more game key cards (which hold a download key, not the game) and digital only sales.November 4, 2026
ROHM group companies ROHM Semiconductor and LAPIS Semiconductor still supply ROM chips to Nintendo, so it is unlikely that Nintendo will eventually go digital only in the near future like Sony and Microsoft’s recent plans. With one less supplier, however, Nintendo may be forced to raise prices on physical games.
The biggest loser in all of this (except the players), however, can be the legendary chip design company MegaChips. Nintendo buys ROM chips from Macronix directly; MegaChips designs the ROM chips according to Nintendo’s needs and, lacking manufacturing capacity, outsources them to Macronix. MegaChips’ 2022 company report states that Nintendo accounted for 87.8% of its sales, while Macronix accounted for 67.8% of its outsourced manufacturing purchases. The report even states that if Macronix manufactures ROM chips, “MegaChips’ operating results may be affected.” The 2022 document goes on to say that there was no indication that the risk was obvious; however, the risk just became very real, and we are not aware of MegaChips emergency plan to deal with this situation. However, Macronix and MegaChips likely talked among themselves about Macronix’s plans to stop ROM chip manufacturing, giving MegaChips some time to find another manufacturer before Macronix shuts down the ROM chip business.
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