Nintendo has used TSMC for decades now too.
The Wii U GPU was TSMC 40nm in 2012 ... 40nm TSMC production started in 2008, so Nintendo used a 4 year old process here.
The Switch GPU was TSMC 20nm in early 2017 ... 20nm TSMC production started in fall 2014, so Nintendo used a 2 1/2-3 year old process here.
If the Switch 2 is using TSMC 5nm for fall 2024 ... TSMC started production in fall 2020 (iPhone 12), so this would be a 4 year old process.
The Switch Lite/Mariko die shrunk to TSMC 16nm in 2019 ... TSMC started 16nm production in 2015 .... so this was a 4 year old process.
This time line pretty much is in line with Nintendo's previous two consoles. Nothing outrageous here at all. Nintendo using a 4 year old TSMC node design is the same thing as the Wii U and actually more dated than the Switch 1 was. TSMC will probably want to keep that Nintendo business too, they are a fairly large customer that they've been working with for a long time.