Korean chip suppliers hopeful on Nintendo Switch 2's first week sales

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Korean chip suppliers hopeful on Nintendo Switch 2's first week sales

Audio report: written by reporters, read by AI


An attendee uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, England, April 11. [REUTERS/YONHAP]

An attendee uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, England, April 11. [REUTERS/YONHAP]

Nintendo’s first new console in eight years, the Nintendo Switch 2, has become a breakout success, selling 3.5 million units in just four days — a pace faster than expected. The surge in demand is fueling optimism that Korea’s semiconductor industry, which supplies key components, will benefit.
 
 
Nintendo announced on Wednesday that global sales of the Switch 2, released on June 5, surpassed 3.5 million units within four days. This far exceeds the 2.7 million units the first-generation Switch sold in its first month in 2017, setting a new record for fastest sales.
 

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In the United States, traffic surged so heavily during online preorders that some websites became temporarily unavailable. In Korea, supply shortages have led to resale markups of between 50,000 and 100,000 won ($37 and $74).
 
In Korea, the Switch 2 is priced at 648,000 won, compared to 360,000 won for the original Switch when it launched domestically in 2017. 
 
The unexpected boom is injecting energy into Korea’s semiconductor sector.
 
People wait in line for the new Nintendo Switch 2 video game consoles at Union Square, Thursday, June 5, 2025, in San Francisco. [AP/YONHAP]

People wait in line for the new Nintendo Switch 2 video game consoles at Union Square, Thursday, June 5, 2025, in San Francisco. [AP/YONHAP]

A stack of the Nintendo Switch 2 devices are handed off at the Nintendo store in New York's Rockefeller Center, Thursday, June 5, 2025. [AP/YONHAP]

A stack of the Nintendo Switch 2 devices are handed off at the Nintendo store in New York's Rockefeller Center, Thursday, June 5, 2025. [AP/YONHAP]

Samsung Electronics is considered the biggest beneficiary, as it manufactures the custom Nvidia chipset that powers the Switch 2 through its foundry division. The previous Switch used chips produced by Taiwan’s TSMC, but Samsung won the contract this time. Industry sources estimate that the deal could generate roughly $1 billion in revenue for Samsung.
 
 
The benefits go beyond revenue. Securing a major contract from a global gaming company like Nintendo is an opportunity for Samsung Foundry to demonstrate its technological competitiveness and reliability to potential clients. For Samsung, which has struggled to attract new customers in its foundry business, the deal is a much-needed breakthrough.
 
 
SK hynix is also gaining from the launch. The Switch 2 reportedly uses 12GB of LPDDR5 DRAM and 256GB of NAND flash storage supplied by SK hynix. Although the unit price for these components is not high, overall sales volume will drive up memory chip shipments in tandem.
 
 
An attendee wearing a cow costume while playing Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. [REUTERS/YONHAP]

An attendee wearing a cow costume while playing Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. [REUTERS/YONHAP]

Sales forecasts for the Switch 2 remain strong. In its earnings report last month, Nintendo set a target of selling 15 million units by March next year — a goal that would match the first-generation Switch’s 15.05 million cumulative first-year sales in just 10 months. At the current pace, analysts believe the Switch 2 could exceed that target.
 
  
One potential variable is U.S. trade policy. According to Bloomberg, Nintendo President Shuntaro Furukawa said that pricing in the U.S. could be adjusted depending on future market conditions.
 
The Switch 2 currently retails for $449.99 in the United States. Industry observers warn that prices could rise by 7 to 8 percent, or up to 30 percent in the worst-case scenario, potentially dampening consumer demand.


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY YI WOO-LIM [[email protected]]
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