Macronix, one of Nintendo’s key ROM chip suppliers for Switch and Switch 2 game cartridges, is reportedly shutting down its ROM business to focus on manufacturing NOR and NAND flash chips for AI data centers, according to multiple reports. MST Financial’s David Gibson reported on X that Macronix is phasing out the business, with no new ROM products and Q3 the last quarter it reports ROM sales separately. He noted Macronix ROM sales in Q3 of this year dropped to 5%, compared to last year’s 26%, and that the NT$37.8 billion capital expenditure is allocated to NOR and NAND Flash, leaving none for ROM. Taipei Times corroborated the report, stating Macronix is gradually phasing out ROM production and that capital expenditure is split into NT$ 22 billion for expanding manufacturing capacity followed by an additional NT$15.8 billion for NAND flash used in eMMCs and 3D NAND. Gibson expects Nintendo’s digital margins to grow through more Game-Key Cards or digital-only sales, but said physical cards will likely carry on for some time because Macronix isn’t the only source of ROM chips. ROHM group companies ROHM Semiconductor and LAPIS Semiconductor still supply ROM chips to Nintendo. With one less supplier, Nintendo may be forced to increase prices on physical games.