Nintendo Switch 2 chipset to be manufactured on Samsung's 8nm process

Samsung foundry's legacy process are very well established. They're mature processes with yields between 70-80%, and the company is now seeing an uptick in orders from chip designers even as it grapples with a showdown for its advanced processes.

Nintendo is going to launch its Switch 2 console in the near future. A new report indicates that Samsung will manufacture the Switch 2's Tegra chipset on its 8nm process.

Reports from South Korea indicate that Samsung Foundry will manufacture the Nintendo Tegra chipset on its 8nm process. Nintendo is going to utilize this chipset in its upcoming Switch 2 console.

This could end up being quite a lucrative deal for Samsung as the Switch 2 is expected to perform very well in the market. Analysts expect Nintendo to ship more than 15 million units of its new console, and each unit will be powered by a chipset that Samsung has manufactured.

The deal should help arrest some of the decline that the Samsung Foundry has faced, both in market share and in revenue, as it has struggled to win customers for advanced processes like the 3nm GAA.

Nintendo had reportedly considered opting for TSMC's 7nm or 8nm process for this chip, but it ultimately decided to go with Samsung 8nm process. The Korean giant reportedly offer faster delivers and more competitive pricing, which is unsurprising, as Samsung's foundry is known for being aggressive on price compared to TSMC in order to win more business.