Macronix Cuts ROM Output 39% to Fuel Data Center Memory Growth

Nintendo is losing a major supplier for its Switch game cartridges. Macronix, a key provider of memory components, announced it will phase out production of Read-Only Memory, or ROM. The company is redirecting its manufacturing capacity toward NOR flash memory, which serves the booming data center sector.

Macronix disclosed the shift during its quarterly earnings call. Third-quarter 2026 financial results show a stark change in revenue streams. ROM revenue fell 39 percent compared to the same period last year. In contrast, revenue from NOR memory grew 158 percent. Sales of NAND memory surged 768 percent year over year.

Miin Wu, chairman and CEO of Macronix, explained the strategic move during the call. He noted that demand for NOR memory in data centers is high. Wu stated that customers are actively seeking more capacity and pressing the company to deliver additional NOR flash solutions to meet their infrastructure needs.

The company indicated it expects chip prices to rise in the near term. This trend reflects market dynamics where specialized memory for artificial intelligence and data storage drives profitability for semiconductor manufacturers. Macronix is aligning its production capabilities with the highest-growth segments of the tech industry.

For Nintendo, the loss of a ROM supplier is a direct challenge to its physical media strategy. The Japanese gaming giant remains committed to physical releases, unlike competitors. In August, Nintendo reported that physical titles accounted for 38.5 percent of its games sales. This figure is higher than that of other major publishers, such as Capcom, which rely more heavily on digital distribution.

Sony has announced it will cease production of physical game discs starting in January 2028. Nintendo’s stance distinguishes it in the industry. The company must now secure alternative suppliers for the specific ROM chips used in Switch cartridges to maintain its physical release schedule.

Macronix’s move follows a similar trend in the semiconductor industry. Nearly a year ago, Micron shut down Crucial, its consumer brand for RAM and solid-state drives. Micron refocused its efforts on meeting growing demand for memory in AI data centers. The departure of another major supplier indicates a shift in the memory market toward data center infrastructure.