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Vodacixi said:

I heard a different story. IS was funded independently from Nintendo and their relationship started as a hardware partner and eventually IS would become a software contractor. They helped R&D1 with a bunch of games, but I can't find any reliable source that confirms that IS was part of R&D1.

Do you have a link of where you got that from because everywhere I check all says they were formed from R&D1 with the original 13 members even being from R&D1, Toru Narihiro their founder was tasked with porting software to cartridge roms I've not seen anywhere that says they were hardware partners at all.