Nintendo has chosen Samsung Electronics to manufacture the main chips for its upcoming Switch 2 console, aiming to ship over 20 million units by March 2026.

Samsung will produce a custom processor designed by Nvidia using 8-nanometer technology, replacing the original Switch’s TSMC-made chip.

By partnering with Samsung, Nintendo hopes to secure better production capacity and avoid resource competition at TSMC.

Demand for the Switch 2 is high, with 2.2 million pre-orders in Japan alone, pushing Nintendo to increase its production target to 15 million units.

Samsung, Nvidia, and Nintendo have not officially commented on the reported collaboration.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Strategic semiconductor partnerships shaped by practical needs, not just performance

Nintendo’s shift to Samsung for the Switch 2 chips follows a pragmatic approach to technology partnerships that has defined the company for decades.

While TSMC dominates the foundry market with a 64.9% share compared to Samsung’s 9.3%, Nintendo chose Samsung’s 8-nanometer node technology that was optimized for the Nvidia-designed chipset 1.

This continues Nintendo’s pattern of prioritizing reliable production and strategic fit over cutting-edge specifications, similar to their $1 billion partnership with IBM for the GameCube’s Gekko processor in 2001 2.

The decision reflects Nintendo’s hardware philosophy, where practical manufacturing considerations often outweigh the pursuit of maximum technical capabilities 3.

Nintendo’s choice reflects a long-standing business approach: securing sufficient technology from the right partner rather than chasing the most advanced manufacturing process at any cost.

2️⃣ Production capacity emerges as the critical factor in console generation transitions

The Samsung partnership could help Nintendo deliver over 20 million Switch 2 units by March 2026, significantly exceeding their conservative 15 million unit forecast.

This focus on production capacity follows Nintendo’s recent challenges with supply constraints, including their public apology for Switch 2 pre-order shortages when they received 2.2 million applications in Japan alone 4.