Macronix, a supplier of ROM chips used in Nintendo Switch and Switch 2 game cards, is reportedly phasing out ROM production as it redirects manufacturing capacity toward NOR and NAND flash chips for data centers and other uses. The reported change could affect Nintendo’s supply options for physical games, though it does not mean cartridge production is ending.
MST Financial analyst David Gibson said Macronix plans to stop developing new ROM products and that the third quarter would be the last period in which it reports ROM sales separately. He also reported that ROM made up 5% of the company’s sales in that quarter, down from 26% a year earlier.
Macronix’s reported NT$37.8 billion in capital expenditure is allocated to NOR and NAND flash, according to Gibson. The Taipei Times also reported that the company is gradually winding down ROM production and described two investment phases: NT$22 billion to expand manufacturing capacity, followed by NT$15.8 billion for NAND flash used in eMMCs and 3D NAND.
Macronix is not Nintendo’s only ROM supplier. ROHM Semiconductor and LAPIS Semiconductor, both part of the ROHM Group, also supply chips. Gibson expects physical game cards to remain available for some time, but says Nintendo could make greater use of Game-Key Cards or digital sales. A reduced number of suppliers could also put pressure on physical game prices.
Nintendo’s chip supply chain also involves MegaChips, which designs ROM chips to the company’s specifications and outsources their manufacture to Macronix. MegaChips does not have its own manufacturing capacity. Its 2022 company report said Nintendo represented 87.8% of its sales and Macronix accounted for 67.8% of its outsourced manufacturing purchases. The report warned that Macronix’s ability to manufacture ROM chips could affect MegaChips’ operating results; the available reports do not detail a contingency plan.
Sources: Tom's Hardware.