Samsung’s Foundry Business May Get $1.2 Billion Boost from Nintendo SoC Order

Earlier this month, a report revealed that Samsung has secured a deal with Nintendo to produce chips for the next-generation game console, the Switch 2. This is a major win for the company, as its semiconductor division has been going through a tough time lately. Now, a fresh report reveals that this deal will help Samsung earn $1.2 billion in foundry revenue, which could give a boost to its struggling chip business.

Samsung to manufacture NVIDIA Tegra chip using 8nm process for Nintendo Switch 2 console

Nintendo is gearing up to launch its Nintendo Switch 2 on June 5. The video game console will feature an NVIDIA Tegra chip, manufactured by Samsung Foundry using its 8nm process. The Korean firm’s 8nm process is a mature node with a yield of over 70–80%, which could increase profitability.

According to a report from Digitimes (via @Jukanlosreve), Samsung will likely generate $1.2 billion in foundry revenue by securing the SoC order for Nintendo’s Switch 2. This should positively impact Samsung’s semiconductor business and help lower the gap with the industry leader, TSMC. The gap between the two companies has recently widened, with a revenue difference of over 10 trillion won in Q1 2025.

Previous reports revealed that Nintendo aims to sell 15 million Switch 2 consoles in the first year. It could exceed 20 million units within the next 1-2 years. If this pans out, it could help Samsung to bounce back in the semiconductor space.

Meanwhile, Samsung also aims to supply OLED screens for a future version of the Switch 2 console. The company is already supplying panels for the first Switch OLED model, so it wants to continue the partnership. But for now, Nintendo is opting for a larger 7.9-inch LCD screen for its upcoming console that supports HDR.

In related news, Samsung is reportedly planning to merge its System LSI division with the Foundry division, as both share the urgent goal of succeeding in advanced process below 2nm. We will learn more about it once Samsung’s DS division team makes a decision regarding the restructuring.