ultimateimp – Nintendo has selected Samsung Electronics to manufacture the main processor chips for its next-generation console, the Switch 2. This partnership is a strategic move designed to ensure high-volume production. Enabling the Japanese gaming company to meet its ambitious goal of selling over 20 million units by March 2026.
The chip in question was designed by Nvidia and will be produced using Samsung’s 8-nanometer fabrication process. According to insiders familiar with the matter. This move will significantly boost production speed and allow Nintendo to scale quickly if demand grows further. This shift also reduces the strain on suppliers, potentially avoiding the production delays that affected previous launches.
While Nintendo has projected initial sales of 15 million units, internal planning aims higher. The company began scaling production efforts before pre-orders even started, anticipating intense demand. In Japan alone, Nintendo received 2.2 million pre-order applications. Prompting a public apology for being unable to meet the initial demand.\
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A Win for Samsung in Its Battle Against TSMC
Samsung’s role in making the Switch 2 chip marks a significant win in its ongoing competition with Taiwan Semiconductor Manufacturing Co. (TSMC). Historically, TSMC has led the contract chipmaking sector by attracting top clients like Apple and Nvidia. It has maintained that lead through consistent technological upgrades and reliable high-volume output.
With the Switch 2 chip, Samsung aims to revive its lagging foundry division. This division has long aspired to become a second pillar of the company’s chip business. Alongside its more dominant memory segment. The new partnership with Nintendo offers Samsung an opportunity to prove its manufacturing capability and increase utilization of its 8nm process line.
Previously, the original 2017 Switch used chips manufactured by TSMC. However, the Nvidia-designed chip for the Switch 2 is reportedly optimized for Samsung’s system. This compatibility allows Nintendo to sidestep competition for production space at TSMC, which is often booked by major clients.
The collaboration could help Samsung regain relevance in a market where smaller process nodes like 2nm are now the benchmark for top-tier contracts.
Supply Chain Strategy Aims to Avoid Shortages
Nintendo’s pivot to Samsung is also a supply chain decision designed to secure long-term production reliability. The gaming giant is acutely aware of the challenges in producing enough units to meet demand for a major hardware launch.
To prevent stock shortages and delays, Nintendo asked component suppliers to increase capacity well before Switch 2 pre-orders opened. This proactive approach contrasts with earlier console launches, which often suffered from unexpected supply issues.
Foxconn and other hardware assemblers are also key to this ramp-up. While Samsung can increase chip output as needed, actual console assembly will still depend on these partners. The ability to scale efficiently will determine whether Nintendo hits or exceeds its internal goal of selling over 20 million units by March 2026.
Supply resilience is crucial as Nintendo aims to transition from the aging original Switch to its next major platform.
The Switch 2: A Pivotal Product for Nintendo’s Future
The Switch 2 represents more than just a hardware upgrade. For Nintendo, it’s a crucial moment to reinvigorate growth and consumer excitement. The original Switch launched in 2017 and delivered massive success, but sales have slowed in recent years as the console ages.
Company president Shuntaro Furukawa said Nintendo’s initial goal is to match the original Switch’s launch numbers—around 15 million units in the first 10 months. That statement has analysts believing there’s room to exceed that figure, especially given the strong early interest.
With new graphics capabilities, a redesigned chip architecture, and likely new features, the Switch 2 aims to capture a broad audience. Nintendo expects it to perform well across key markets and help renew investor confidence.
How the company navigates this transition will shape its position in the global gaming industry over the next several years.
Samsung’s Broader Role in the Switch Ecosystem
Samsung is not a new player in Nintendo’s supply chain. The Korean tech giant already provides key components such as NAND flash memory and OLED screens for Nintendo devices. With the Switch 2, Samsung expands its role by producing the primary processor chip.
There’s speculation that Samsung will continue to push for more of its technology to be integrated into future versions of the Switch 2, particularly its OLED displays. Sources indicate that Samsung hopes to supply panels for a potential mid-cycle refresh of the console.
This growing relationship not only helps Nintendo secure a more stable supply line but also strengthens Samsung’s position in the global electronics market. Securing a high-profile project like the Switch 2 gives Samsung a valuable opportunity to showcase its chipmaking strengths and potentially attract more clients.
Together, the companies are setting the stage for what may become one of the most successful console launches in gaming history.
