diff --git a/drivers/ethernet/Kconfig.nxp_s32_netc b/drivers/ethernet/Kconfig.nxp_s32_netc
index c1b3963752a..d56c38916ba 100644
--- a/drivers/ethernet/Kconfig.nxp_s32_netc
+++ b/drivers/ethernet/Kconfig.nxp_s32_netc
@@ -92,18 +92,12 @@ config ETH_NXP_S32_MAC_FILTER_TABLE_SIZE
 	help
 	  Maximum number of entries supported in the MAC filter hash table.
 
-config ETH_NXP_S32_PSI_INIT_PRIORITY
-	int
-	default 60
-	help
-	  PSI initialization priority. It must be lower than VSI priority.
-
 config ETH_NXP_S32_VSI_INIT_PRIORITY
 	int
-	default 61
+	default 81
 	help
-	  VSI initialization priority. It must be bigger than PSI priority
-	  and lower than CONFIG_NET_INIT_PRIO, so that it can start after the PSI
-	  but before the networking sub-system.
+	  VSI initialization priority. It must be bigger than PSI init priority
+	  (CONFIG_ETH_INIT_PRIORITY) and lower than CONFIG_NET_INIT_PRIO, so
+	  that it can start after the PSI but before the networking sub-system.
 
 endif # ETH_NXP_S32_NETC
diff --git a/drivers/ethernet/eth_nxp_s32_netc_priv.h b/drivers/ethernet/eth_nxp_s32_netc_priv.h
index 0abb601560a..c4948af3d53 100644
--- a/drivers/ethernet/eth_nxp_s32_netc_priv.h
+++ b/drivers/ethernet/eth_nxp_s32_netc_priv.h
@@ -99,8 +99,6 @@ struct nxp_s32_eth_msix {
 struct nxp_s32_eth_config {
 	const Netc_Eth_Ip_ConfigType netc_cfg;
 
-	const Netc_EthSwt_Ip_ConfigType switch_cfg;
-
 	Netc_Eth_Ip_MACFilterHashTableEntryType *mac_filter_hash_table;
 
 	uint8_t si_idx;
diff --git a/drivers/ethernet/eth_nxp_s32_netc_psi.c b/drivers/ethernet/eth_nxp_s32_netc_psi.c
index 375767de97d..f35eb73ba28 100644
--- a/drivers/ethernet/eth_nxp_s32_netc_psi.c
+++ b/drivers/ethernet/eth_nxp_s32_netc_psi.c
@@ -135,7 +135,6 @@ static int nxp_s32_eth_configure_cgm(uint8_t port_idx)
 static int nxp_s32_eth_initialize(const struct device *dev)
 {
 	const struct nxp_s32_eth_config *cfg = dev->config;
-	Std_ReturnType swt_status;
 	int err;
 
 	err = pinctrl_apply_state(cfg->pincfg, PINCTRL_STATE_DEFAULT);
@@ -149,14 +148,6 @@ static int nxp_s32_eth_initialize(const struct device *dev)
 		return -EIO;
 	}
 
-	/* NETC Switch driver must be initialized before PSI */
-	swt_status = Netc_EthSwt_Ip_Init(NETC_SWITCH_IDX, &cfg->switch_cfg);
-	if (swt_status != E_OK) {
-		LOG_ERR("Failed to initialize NETC Switch %d (%d)",
-			NETC_SWITCH_IDX, swt_status);
-		return -EIO;
-	}
-
 	return nxp_s32_eth_initialize_common(dev);
 }
 
@@ -369,6 +360,15 @@ static Netc_EthSwt_Ip_PortType nxp_s32_eth0_switch_ports_cfg[NETC_ETHSWT_NUMBER_
 	LISTIFY(NETC_ETHSWT_NUMBER_OF_PORTS, NETC_SWITCH_PORT_CFG, (,))
 };
 
+static const Netc_EthSwt_Ip_ConfigType nxp_s32_eth0_switch_cfg = {
+	.port = &nxp_s32_eth0_switch_ports_cfg,
+	.EthSwtArlTableEntryTimeout = NETC_SWITCH_PORT_AGING,
+	.netcClockFrequency = DT_PROP(PSI_NODE, clock_frequency),
+	.MacLearningOption = ETHSWT_MACLEARNINGOPTION_HWDISABLED,
+	.MacForwardingOption = ETHSWT_NO_FDB_LOOKUP_FLOOD_FRAME,
+	.Timer1588ClkSrc = ETHSWT_REFERENCE_CLOCK_DISABLED,
+};
+
 PINCTRL_DT_DEFINE(PSI_NODE);
 
 NETC_GENERATE_MAC_ADDRESS(PSI_NODE, 0)
@@ -382,14 +382,6 @@ static const struct nxp_s32_eth_config nxp_s32_eth0_config = {
 		.paCtrlRxRingConfig = &nxp_s32_eth0_rxring_cfg,
 		.paCtrlTxRingConfig = &nxp_s32_eth0_txring_cfg,
 	},
-	.switch_cfg = {
-		.port = &nxp_s32_eth0_switch_ports_cfg,
-		.EthSwtArlTableEntryTimeout = NETC_SWITCH_PORT_AGING,
-		.netcClockFrequency = DT_PROP(PSI_NODE, clock_frequency),
-		.MacLearningOption = ETHSWT_MACLEARNINGOPTION_HWDISABLED,
-		.MacForwardingOption = ETHSWT_NO_FDB_LOOKUP_FLOOD_FRAME,
-		.Timer1588ClkSrc = ETHSWT_REFERENCE_CLOCK_DISABLED,
-	},
 	.si_idx = NETC_ETH_IP_PSI_INDEX,
 	.port_idx = NETC_SWITCH_PORT_IDX,
 	.tx_ring_idx = TX_RING_IDX,
@@ -415,6 +407,28 @@ ETH_NET_DEVICE_DT_DEFINE(PSI_NODE,
 			NULL,
 			&nxp_s32_eth0_data,
 			&nxp_s32_eth0_config,
-			CONFIG_ETH_NXP_S32_PSI_INIT_PRIORITY,
+			CONFIG_ETH_INIT_PRIORITY,
 			&nxp_s32_eth_api,
 			NET_ETH_MTU);
+
+static int nxp_s32_eth_switch_init(void)
+{
+	Std_ReturnType swt_status;
+
+	swt_status = Netc_EthSwt_Ip_Init(NETC_SWITCH_IDX, &nxp_s32_eth0_switch_cfg);
+	if (swt_status != E_OK) {
+		LOG_ERR("Failed to initialize NETC Switch %d (%d)",
+			NETC_SWITCH_IDX, swt_status);
+		return -EIO;
+	}
+
+	return 0;
+}
+
+/*
+ * NETC Switch driver must be initialized before any other NETC component.
+ * This is because Netc_EthSwt_Ip_Init() will not only initialize the Switch,
+ * but also perform global initialization, enable the PCIe functions for MDIO
+ * and ENETC, and initialize MDIO with a fixed configuration.
+ */
+SYS_INIT(nxp_s32_eth_switch_init, PRE_KERNEL_1, CONFIG_KERNEL_INIT_PRIORITY_DEFAULT);
diff --git a/soc/arm/nxp_s32/s32ze/Kconfig.defconfig.series b/soc/arm/nxp_s32/s32ze/Kconfig.defconfig.series
index 1820bbb548d..a418c054792 100644
--- a/soc/arm/nxp_s32/s32ze/Kconfig.defconfig.series
+++ b/soc/arm/nxp_s32/s32ze/Kconfig.defconfig.series
@@ -29,16 +29,8 @@ config FLASH_BASE_ADDRESS
 	default 0
 endif # !XIP
 
-# Ethernet driver must init first because it initializes the
-# NETC which is needed for EMDIO functionality
 if NET_L2_ETHERNET
 
-config MDIO_INIT_PRIORITY
-	default 70
-
-config PHY_INIT_PRIORITY
-	default 80
-
 # NETC drops TCP/UDP packets with invalid checksum
 config NET_TCP_CHECKSUM
 	default n