Samsung Wins Switch 2 Chip Production Order from Nintendo, Beats TSMC in Competition

Nintendo Chooses Samsung Over TSMC: "Ensuring Production Stability"
From Memory and OLED to Main Chip, Nintendo Expands Its Supply Chain

Nintendo has decided to entrust the production of core components for its next-generation console, the 'Switch 2,' to Samsung Electronics. According to Bloomberg on May 20 (local time), Nintendo plans to produce more than 20 million units of the Switch 2 by March 2026 through its collaboration with Samsung Electronics.

Nintendo Switch. Photo by Nintendo

Bloomberg reported that Samsung Electronics is currently developing a custom chip (processor) for the Switch 2 using Nvidia's 8-nanometer process. This chip is designed for rapid production, enabling Nintendo to ship large quantities by March 2025, the first year of the console's release.

This decision by Nintendo is considered a significant achievement for Samsung Electronics, which competes with Taiwan's TSMC. Bloomberg analyzed that "Samsung may be able to increase the utilization rate of its semiconductor foundry business and help revitalize its operations."

Samsung Electronics has long been a key supplier of core components for Nintendo. The company has supplied NAND flash memory and OLED panels for the Switch series, and is reportedly actively promoting the adoption of OLED panels for the Switch 2 as well.

While the main chip for the initial Switch (released in 2017) was produced by TSMC, the Switch 2's chip, designed by Nvidia, has reportedly been optimized for Samsung's manufacturing process.

A Nintendo representative explained, "The reason for choosing Samsung was the ability to secure a stable supply chain without having to compete with other companies for TSMC's production capacity."