Macronix, a significant producer of ROM memory chips crucial for Nintendo Switch and the upcoming Switch 2 cartridges, has announced its withdrawal from the ROM business. The company plans to cease ROM product manufacturing by the end of the third quarter of its 2026 fiscal year. This move was disclosed during Macronix's recent earnings call, as reported by industry analyst David Gibson.
While ROM products currently account for only 5 percent of Macronix's overall business, a decline from 26 percent a year prior, the company is reallocating its manufacturing capacity to focus on NOR flash and eMMC memory chips. Macronix is not Nintendo's sole supplier for ROM memory; Rohm Co. (Oki Semiconductor) also provides these components. However, the loss of a key partner could exacerbate existing supply chain pressures, potentially leading to increased prices for physical game cartridges.
Gibson noted that this situation might encourage more publishers, including Nintendo, to shift towards Game-Key Cards. These cards do not include physical cartridges, thereby bypassing the added costs associated with their production. This development occurs amidst a broader global memory and storage crisis, which has already contributed to rising costs for game consoles and graphics cards. Major memory manufacturers have reportedly been redirecting resources to business segments experiencing higher demand.
This trend follows a similar announcement nearly a year ago when Micron, a major global memory manufacturer, revealed its exit from the consumer memory business and the shutdown of its Crucial brand. Despite these industry shifts, Nintendo has maintained that it has no plans to abandon physical games, a stance reiterated just last month, even as rivals like Sony prepare to end disc manufacturing in 2028.