● Covered by 3 sources · 3 reportsMedium impact1 negative2 neutral
Macronix Exits ROM Chip Business, Impacting Nintendo Switch Cartridge Supply
Key points
- Macronix is ceasing its ROM chip production business.
- The company will focus on NOR and NAND flash chips for data centers.
- Macronix supplied ROM chips for Nintendo Switch and Switch 2 cartridges.
- ROM sales dropped to 5% of Macronix's revenue in Q3.
- This change may affect Nintendo's physical game cartridge costs and availability.
- Macronix's ROM production shrunk 39% in the last year.
- Macronix's production capacity is 25,000 12-inch wafers per month.
- Macronix plans $1.2 billion in new capacity, taking over a year to spin up.
Macronix Shifts Focus from ROM to Data Center Chips
Macronix, a key supplier of ROM chips for Nintendo Switch and Switch 2 game cartridges, is reportedly exiting its ROM production business. The company plans to reallocate its manufacturing capacity to produce NOR and NAND flash chips, primarily for data centers.
This strategic shift was confirmed by CEO Miin Wu and reported by the Taipei Times. David Gibson of MST Financial also noted the change, stating that Macronix will not produce new ROM products, and Q3 will be the last quarter where ROM sales are reported separately.
Declining ROM Sales and New Priorities
The decision to phase out ROM production comes after a substantial decline in the company's ROM business. Macronix's ROM sales in Q3 of this year dropped to 5% of its total revenue, a significant decrease from 26% in the previous year. The ROM business experienced a 39% decline over the past year.
Macronix's capital expenditure of NT$37.8 billion is now entirely allocated to NOR and NAND Flash, with no investment directed towards ROM production, indicating a clear shift towards supplying AI needs in data centers.
Potential Impact on Nintendo and Physical Media
The departure of Macronix from the ROM chip market could have implications for Nintendo, particularly regarding its physical game cartridges. As a primary supplier, Macronix's exit may force Nintendo to consider increasing cartridge prices or further promoting digital game purchases.
While Macronix will continue to produce NAND flash memory, which is used in Switch 2 cartridges, the cessation of ROM chip production specifically affects the components used in the physical game cards themselves.
Updates
- Macronix's ROM production shrunk 39% in the last year.
- Macronix's production capacity is 25,000 12-inch wafers per month.
- Macronix plans $1.2 billion in new capacity, taking over a year to spin up.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Macronix, a major supplier of ROM chips for Nintendo Switch game cartridges, announced it is phasing out ROM production and decoupling from the game industry. This decision is driven by the increasing demand and profitability of other memory chips, such as NOR- and NAND-based memory and eMMCs, which are displacing ROM chip production capacity.
Macronix, the primary supplier of ROM chips for Nintendo Switch cartridges, is phasing out its ROM production. This decision follows a 39% decline in its ROM business over the past year, which now accounts for only five percent of its sales. The company will continue to produce NAND flash memory, which is used in Switch 2 cartridges.
Macronix, a key supplier of ROM chips for Nintendo Switch game cartridges, is reportedly ceasing its ROM business to focus on NOR and NAND flash chips for data centers. This shift could lead to increased cartridge prices for Nintendo or a greater reliance on digital game sales, as Macronix's ROM sales dropped significantly.