Nintendo's ROM Chip Supplier Macronix to Exit the Business

Taiwanese chip manufacturer Macronix has announced that it will stop producing ROM chips, which power physical Nintendo Switch and Switch 2 game cartridges. Macronix's ROM production has shrunk 39 percent in the last year and now accounts for just 5 percent of the company's business. The company cited the insatiable demand for more lucrative chips like NOR- and NAND-based memory and eMMCs as the reason for its decision. Macronix's production capacity is stuck at 25,000 12-inch wafers a month, and the company is prioritizing more profitable chip production. This move could be an issue for Nintendo, which relies on Macronix as its main memory chip maker for physical game cartridges. Macronix will begin gradually decoupling from the game industry, but it did not provide a specific timeline for the transition.