Nintendo (NTDOY) Tag-Teams with Samsung for Switch 2 Console Chip

On May 20, Bloomberg reported that Nintendo (OTC:NTDOY) has partnered with Samsung Electronics to produce a key processor chip for its upcoming Switch 2 gaming console. The gaming chip, designed by Nvidia Corp. (NASDAQ:NVDA), will be manufactured using Samsung’s advanced process. This will be a notable shift for Nintendo as it sourced chips earlier from Taiwan Semiconductor Manufacturing Co. (NYSE:TSM). However, such a change in strategy appears prudent for Nintendo as the company wants to ramp up production to meet its targets for the much-awaited gaming console.

A close up of an employee’s hands at a digital gaming console, controlling a popular game.

The company has estimated that sales will reach around 15 million units by March next year. However, the console witnessed strong demand during the pre-orders, with 2.2 million orders in Japan alone. Considering such demand, the market expects sales to exceed that estimate and touch 20 million. Changing to a faster manufacturer should help the company meet those elevated expectations.

Nintendo develops, manufactures, and sells home entertainment products, including video game hardware and software.

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