Nintendo ROM chip supplier Macronix quits to focus on chips for AI data centers, reports indicate
Macronix, one of Nintendo's ROM chip manufacturers, is shutting down the business to reallocate manufacturing for NOR and NAND flash chips that the AI industry demands.
Nintendo's primary memory chip producer, Macronix, is exiting the Switch business to concentrate on manufacturing NOR and NAND flash chips for data centers, according to multiple reports. This shift may result in increased cartridge prices, more Game-Key cards, or a greater reliance on digital purchases for Nintendo. Macronix, which supplies ROM chips for Switch 1 and Switch 2 game memory cards, will cease ROM product production, with Q3 being the final quarter for ROM sales reporting.
Despite Macronix not being Nintendo's sole ROM chip supplier, the company's departure could force the company to increase physical game prices. Nintendo's digital margins are expected to rise due to increased Game-Key cards and digital-only sales, though physical cards will likely remain available for a while. MegaChips, a fabless chip design company, is also affected, as Nintendo doesn't directly purchase ROM chips from Macronix; rather, MegaChips designs the chips based on Nintendo's specifications and outsources manufacturing to Macronix.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
