Macronix Phases Out ROM Production to Focus on AI Chips

Macronix is phasing out its ROM division to shift investment toward NOR and eMMC memory chips, primarily to meet robust demand for chips used in AI data centers. The company announced it will stop developing new ROM products and will cease reporting ROM sales as a standalone category after the current quarter.

This strategic pivot follows a sharp decline in ROM revenue, which dropped from 26% of total sales a year ago to just 5% in the latest quarter, representing a 39% year-on-year decrease. Chairman Miin Wu indicated that near-term growth for the company will be driven primarily by price increases.

While Macronix is a primary supplier of ROM chips for Nintendo Switch game cartridges, reports indicate that Rohm is the primary manufacturer for the upcoming Switch 2. Nintendo has stated it has no current plans to abandon physical cartridges, though digital sales already comprised over 60% of its total sales during Q4 2026 and Q1 2027. Analysts suggest the exit could increase pressure on the physical media supply chain, potentially raising game prices or accelerating the industry shift toward digital sales and Game-Key Cards.