# Macronix exits Nintendo’s ROM chip supply for AI data center chips

Digest AI · Hardware & Compute · published 2026-11-04T17:10:59Z

Canonical: https://digestai.news/story/macronix-exits-nintendos-rom-chip-supply-for-ai-data-center-chips

## Summary

Macronix, a key supplier of ROM chips for Nintendo’s Switch and Switch 2 game cartridges, is reportedly phasing out its ROM business by the end of Q3. The company is redirecting its NT$37.8 billion in capital expenditure toward NOR and NAND flash chips for AI data centers, according to reports from MST Financial’s David Gibson and the *Taipei Times*.

The move could force Nintendo to increase cartridge prices, rely more on digital purchases via Game-Key cards, or seek alternative ROM suppliers like ROHM Semiconductor or LAPIS Semiconductor. MegaChips, a fabless chip design firm that outsourced ROM production to Macronix, faces potential financial strain, as Nintendo accounted for 87.8% of its 2022 sales, with Macronix handling 67.8% of its outsourced manufacturing. While physical cartridges may persist, analysts suggest Nintendo’s digital margins could grow as a result.

## Key points

- Nintendo’s ROM sales to Macronix fell to 5% in Q3 2024 from 26% in Q3 2023
- MegaChips relies on Macronix for 67.8% of outsourced ROM manufacturing, risking financial impact

## Why it matters

The shift signals a broader industry trend of semiconductor firms prioritizing AI infrastructure over consumer electronics, potentially raising costs for Nintendo’s physical gaming hardware and disrupting supply chains for smaller chip designers.

## Sources

1. [Nintendo ROM chip supplier Macronix quits to focus on chips for AI data centers, reports indicate](https://tomshardware.com/video-games/nintendo/nintendo-rom-chip-supplier-macronix-quits-to-focus-on-chips-for-ai-data-centers-game-key-cards-may-be-more-available-as-large-game-storage-chips-become-more-expensive) (Tom's Hardware, 2026-11-04)

## Cite

Digest AI, "Macronix exits Nintendo’s ROM chip supply for AI data center chips", 4 November 2026, https://digestai.news/story/macronix-exits-nintendos-rom-chip-supply-for-ai-data-center-chips

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