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Nintendo's biggest ROM chip supplier is bowing out of the business
Ars Technica • • general
Key Points:
- Macronix, a key ROM chip manufacturer for Nintendo Switch cartridges, announced it will phase out ROM chip production due to declining profitability and increased focus on more lucrative memory chips like NOR, NAND, and eMMCs.
- ROM chip production has decreased by 39% over the past year and now accounts for only 5% of Macronix’s business, with limited wafer production capacity constraining supply.
- Nintendo has no immediate plans to abandon physical game cartridges but may face higher production costs as it shifts to alternative suppliers like Rohm and Lapis Semiconductor.
- Rising cartridge production costs could lead to increased prices for physical Switch games, as seen with Nintendo’s recent pricing strategies and publishers’ cautious cartridge releases.
- Digital game sales continue to grow, representing over 61% of Nintendo’s revenue in Q2 2026, potentially offsetting the impact of reduced demand for physical ROM-based cartridges over time.
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