Macronix Ends ROM Production

Macronix will stop producing Read-Only Memory chips, a move that forces Nintendo to find new suppliers for its Switch game cartridges. The Taiwanese company disclosed the plan on its quarterly earnings call, citing strong demand for other types of memory used in data centers. This shift reduces the number of major manufacturers available to produce the specific chips embedded in physical game cartridges.

The financial results for the third quarter of 2026 show a sharp change in revenue sources. ROM revenue fell by 39 percent compared to the same period last year. In contrast, revenue from NOR memory rose by 158 percent. Sales of NAND memory increased by 768 percent over the same timeframe.

Miin Wu, the chairman and CEO of Macronix, explained the decision during the earnings call. He stated that customers are actively seeking more capacity for NOR memory to meet infrastructure needs. Wu noted that demand for these components in data centers is high, prompting the company to redirect its production resources toward that segment.

The company expects chip prices to continue rising in the near term. This pricing trend reflects market conditions where specialized memory for artificial intelligence and data storage drives profitability for semiconductor makers. Macronix is aligning its production capabilities with the fastest growing segments of the tech industry.

Nintendo remains committed to physical media, distinguishing itself from competitors like Sony. Sony announced it will cease production of physical game discs in January 2028. Nintendo reported in August that physical titles accounted for 38.5 percent of its games sales. This share is higher than that of other major publishers, such as Capcom, which rely more on digital distribution.

The move follows a similar trend in the semiconductor industry. Micron shut down its consumer brand Crucial nearly a year ago to refocus on memory for AI data centers. The departure of another major supplier suggests that the balance of power in the memory market is shifting toward data center infrastructure. Nintendo will need to secure alternative suppliers to maintain its physical release schedule.

The transition affects the supply chain for consumer electronics that rely on similar memory components. As data center demand grows, competition for semiconductor capacity between consumer devices and infrastructure projects intensifies. Nintendo must identify reliable sources for cartridge memory to support its handheld and hybrid console operations.