Nintendo's biggest ROM chip supplier is bowing out of the business

What happened: Macronix said in its third-quarter earnings report that ROM chip production "has reached its end" and that it will gradually decouple from the game industry. Analyst David Gibson notes Nintendo uses Macronix as its main memory chip maker for physical game cartridges. Key numbers: ROM production shrank 39 percent in the last year and is now 5 percent of Macronix's business. Why it matters: The shift could be an issue for Nintendo's supply of physical Switch and Switch 2 game cartridges, as less profitable ROM chips are crowded out by NOR, NAND, and eMMC production.

Macronix said in its third-quarter earnings report that ROM chip production "has reached its end" and that it will gradually decouple from the game industry. Analyst David Gibson notes Nintendo uses Macronix as its main memory chip maker for physical game cartridges.

The shift could be an issue for Nintendo's supply of physical Switch and Switch 2 game cartridges, as less profitable ROM chips are crowded out by NOR, NAND, and eMMC production.