Nintendo's Key ROM Chip Supplier to Exit Business

Chipmaker Macronix announced it will gradually reduce its production of ROM chips for Nintendo Switch and Switch 2 game cartridges, citing declining demand and shifting production priorities.

Macronix reported that ROM chip production now accounts for just 5 percent of its business, down from a 39 percent reduction in the previous year, as more profitable memory chips take up production space.

The company’s production capacity remains capped at 25,000 12-inch wafers per month, with new $1.2 billion capacity expansion projects expected to take over a year to complete.

Nintendo has not abandoned physical cartridges, but may need to rely on other suppliers like Rohm and Lapis Semiconductor for its remaining ROM chip needs.

Publishers may see higher costs for physical Switch cartridges as Nintendo faces supply constraints, which could lead to increased prices for physical games.

Digital software sales represented 61.5 percent of Nintendo’s business in the second calendar quarter of 2026, suggesting a growing shift away from physical cartridges over time.