Macronix Exits ROM Memory Business, Impacting Nintendo’s Supply Chain
- Macronix, a key ROM memory supplier for Nintendo, will exit the ROM business by Q3 of fiscal year 2026.
- ROM products account for only 5% of Macronix’s current sales, a drop from 26% the previous year.
- Nintendo may face higher costs and potential shifts to Game-Key Cards as alternatives to physical cartridges.
Macronix, a longtime partner of Nintendo and a significant producer of ROM memory, has officially announced its decision to leave the ROM business. These ROM chips are critical components in the cartridges used for the Nintendo Switch and its successor.
Industry analyst David Gibson shared the update on X, revealing that Macronix disclosed its plans during a recent earnings call. The company intends to completely phase out its ROM products by the end of the third quarter of fiscal year 2026.
Currently, ROM products make up just 5 percent of Macronix’s overall business based on sales reports for the last quarter. This figure marks a significant reduction from 26 percent recorded just one year prior. Consequently, Macronix is reallocating its manufacturing capabilities to focus on NOR (flash) and eMMC memory chips.
It should be noted that while Macronix is a key supplier, Nintendo also sources ROM memory from Rohm Co. (Oki Semiconductor). However, losing Macronix as a supplier adds pressure on an already strained supply chain, which could lead to increased prices.
As Gibson highlighted, this situation may compel more publishers, including Nintendo, to consider shipping their games as Game-Key Cards—formats that do not require physical cartridges, thus potentially sidestepping additional costs.
Although not explicitly stated, this development appears to be partially influenced by the ongoing global memory and storage crisis driven by AI. This crisis has made many consumer products more expensive and impacted the affordability of gaming consoles, alongside redirecting resources from major memory manufacturers to areas with higher demand.
Nearly one year ago, Micron, one of the three largest memory manufacturers worldwide, announced its exit from the consumer memory market and the shutdown of its Crucial brand.
The situation adds pressure on Nintendo, which remains one of the few companies still committed to physical media. The company may have to either raise game prices further or consider abandoning cartridges altogether. Just last month, Nintendo reiterated its commitment to physical games, even as rival Sony plans to cease disc manufacturing by 2028.
News Courtesy of Eurogamer
