In a strategic victory, Samsung Electronics has reportedly won the order to produce the main chip for Nintendo’s Switch 2 console.
This decision to switch from TSMC to Samsung’s 8nm node highlights a significant boost to Samsung’s influence in the international foundry sector.
Gaming Console Breakthrough
South Korean media, including Joongang Economy News and Newsis, have revealed that Samsung is manufacturing the Nvidia-designed SoC for the Switch 2 Chip Production.
This represents a significant shift, with Samsung officially entering a console chip market historically led by TSMC (2330.TW).
The consensus in South Korea’s industry circles is that this three-way partnership could serve as a major stepping stone for Samsung Foundry’s market expansion.
The Strategy Enderpinning the Switch
pan style="font-size: 14pt;">Samsung was chosen by Nintendo over TSMC mainly due to its consistent production capabilities and process alignment. Industry analysts say the decision reflects complex strategic motives.While TSMC manufactured all prior Switch chips, the Switch 2’s initial production target of more than 20 million units highlights the importance of production stability.
Changes in storage and internal design require a new SoC design. Samsung, offering related products such as SD cards, has proven its integration prowess and earned considerable acclaim.
With its 8nm FinFET process already used for Nvidia GPUs, Samsung ensures stable yields and efficient utilization to support mass production. Its ability to also produce the SD cards for Switch 2 enables system-level optimizations, which reportedly played a crucial role in Nintendo’s selection.
Heat control is effectively managed by Samsung through low-power design and firmware optimization, building on lessons learned from earlier microSD product projects.
First Sign of Contest In Chip Foundry Grena
style="font-size: 14pt;">Experts believe this contract marks more than a one-time deal; it represents the “first signal” of Samsung’s official rivalry with TSMC, the foremost foundry service provider globally.TSMC has enjoyed a virtual monopoly on top clients like Apple, AMD, and Qualcomm for an extended period. Samsung is now laying the groundwork for a challenge through collaborations with leading, tech-savvy companies such as Nintendo and Nvidia.
If Switch 2 sales go beyond 20 million units in the initial year, market research and investors believe Samsung could generate foundry revenues amounting to KRW 1.6 trillion (US$1.2 billion).
By moving beyond traditional focuses like smartphones and servers into consumer electronics including game consoles, Samsung Foundry aims to broaden its customer base and stabilize revenue growth long-term.
Also Read: How the Switch Marked A Turning Point for Nintendo’s Tech Ambitions
