AI memory boom claims another victim as major Nintendo Switch cartridge chip supplier exits ROM business
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The big picture: Memory makers have spent most of this year steering their factories toward AI data centers, a shift that is reportedly impacting the chips inside Nintendo Switch game cartridges. Taiwanese chipmaker Macronix is one of the main suppliers of the ROM in those cards. It's now winding down that business to make more flash memory instead. That said, Nintendo likely won't run short of cartridges anytime soon.
MST Financial analyst David Gibson posted about the change on X after digging through the company's latest quarterly report. Macronix won't develop any new ROM products from here on. The latest quarter is also the last in which Macronix will report ROM sales separately. Those sales made up just 5% of revenue, down from 26% a year earlier.
Meanwhile, the rest of Macronix's business...
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