Macronix exits ROM chip manufacturing risking higher Switch cartridge prices

Taiwanese semiconductor and memory manufacturer Macronix is ending its read-only memory, or ROM, production, which provides the memory chips used in Nintendo Switch game cartridges. Chief Executive Officer Miin Wu confirmed the move to phase out ROM manufacturing. The decision leaves Japanese console maker Nintendo relying on alternative suppliers such as Rohm and Lapis Semiconductor for its remaining ROM chip orders, Ars Technica and Engadget reported. [1][2]

Macronix reported a record high net profit of 337 million dollars for the third quarter of 2026. However, Wu stated that new customer demand for NOR flash memory used in data centers prompted the shift. Tom's Hardware and Engadget both reported that Macronix is reallocating its manufacturing capacity away from ROM chips to focus on NOR and NAND flash memory required by the artificial intelligence industry. [2][3]

The exit of a major supplier could lead to physical Switch cartridge shortages and higher manufacturing expenses, according to Ars Technica and PC Guide. Ars Technica noted that higher production costs may force publishers to raise retail prices for physical games. Nintendo stated last month that it has no plans to abandon physical game cartridges in the near future, despite previously charging higher prices for select physical titles compared to their digital download versions. [1][4]

Nintendo was founded as a playing card company in Kyoto, Japan, and now develops, publishes, and manufactures video games and consoles worldwide. While digital sales continue to expand across the games industry, Nintendo maintains that physical game cards remain part of its business strategy. [1][7][9][10]