
Nintendo has partnered with Samsung to boost production of the highly anticipated Switch 2 console. With Samsung's support, Nintendo aims to manufacture 20 million Switch 2 units by March 2026. The collaboration extends to component supply, with Samsung providing essential parts such as display screens and memory units, ensuring a seamless and efficient production process for the next-gen console.
In a significant move for its next-generation console, Nintendo has partnered with Samsung Electronics to manufacture the main chips for the Nintendo Switch 2. This collaboration is expected to significantly boost production capacity, enabling Nintendo to target sales of over 20 million units by March 2026.
With Samsung's expertise, Nintendo is well-positioned to meet the high demand for its upcoming console and strengthen its market presence. This strategic partnership underscores Nintendo's commitment to delivering a successful next-gen gaming experience.
The partnership with Samsung and the associated chip production represent a change in direction for Nintendo. Unlike their relationship with Taiwan Semiconductor Manufacturing Co. (TSMC), where TSMC manufactured the original Switch's chipset.
According to sources with knowledge of the situation, the processor for the Switch 2 is designed by Nvidia, which has been tailored for utilization by Samsung systems, thus making Samsung a logical partner. This partnership is also seen as a significant victory for Samsung as it tries to compete against TSMC in the foundry industry.
Samsung is apparently using its 8-nanometer node to make the customized Nvidia chip. Since Nintendo is expecting unprecedented demand for the Switch 2, Samsung's efficiencies and scale of production are very important to Nintendo.
Nintendo had substantial supply constraints when launching the original Switch in 2017, and the company is no doubt wanting to avoid a repeat with its successor.
Originally, Nintendo expected to sell 15 million Switch 2s in the fiscal year ending March 2026, but with partnerships with Samsung, this number could pop over 20 million. Increasing production volume with Samsung is important for Nintendo because the company sees the Switch 2 as a major product that will rejuvenate growth after numerous years of more modest earnings.
The Switch 2, which will be released in most territories on June 5, 2025, is already creating significant interest, with pre-order requests in Japan alone reportedly exceeding 2.2 million.
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Samsung has previously supplied components like NAND flash memory and OLED screens for the original Switch, so they're not entirely new to Nintendo's supply chain. However, being awarded the contract for the core processor marks a significant increase in their involvement. This new role indicates Samsung's growing capabilities in the semiconductor space.
This arrangement gives Nintendo a competitive advantage. By partnering with Samsung, Nintendo may avoid intense production capacity battles with other major tech vendors that heavily rely on TSMC. The production rate looks promising at first glance, but in the end the shipment volume will also depend on the capacity of hardware assemblers like Foxconn Technology Group.
Nintendo's partnership with Samsung demonstrates the company's proactive approach to meeting consumer demand. This move is expected to facilitate an early start to the launch of the console, which many analysts predict will be the fastest-selling in gaming history.
The success of this collaboration will be closely observed as both Nintendo and Samsung intend to capitalize on the massive hype that is building around the Nintendo Switch 2.
This partnership between Nintendo and Samsung for producing chips for the Switch 2 is a big-brain play. Nintendo clearly does not want to have a launch period shortage and will likely rely on Samsung's strength to sell 20 million units by March of 2026. This partnership strengthens Samsung's foundry business, with Nintendo scouting out a significant component for their new next-gen console, set to release on June 5, 2025.
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