Palit Denies Galax Factory Closure Over Nvidia Chip Shortage

Palit has denied recent speculation that it closed its Galax factory, where it makes Nvidia RTX 50-series GPUs, because it could not secure enough Nvidia chips. The company said Galax continues to operate as usual, no manufacturing facilities have been shut down, and its products remain available through existing distributors and retailers in domestic and international markets.

Palit's response

Palit released an official statement after reports suggested the Galax factory had closed due to a chip supply problem. The company said the claims are inaccurate, that Galax and Palit share the same factories, and that production and business operations continue as normal. Nvidia was not immediately available for comment regarding speculation about chip availability.

Where the rumor came from

The initial claim came from an exclusive report by a Spanish outlet, which said Palit could no longer supply Nvidia GPU chips to Galax and that keeping the facility operational was no longer viable. The report followed the recent launch of the Galax GeForce RTX 5080 HOF Extreme flagship model. Tom's Hardware reported that the sources behind that closure claim were wrong.

Earlier restructuring rumors

This was not the first time this year that Galax was rumored to have ended production. Palit Group restructured its operations earlier this year, which brought similar reports of closure for the GPU brand. Palit also announced that it would consolidate Galax operations at its headquarters in Taiwan, and the company said the speculation both then and now is false.

Market context

The closure speculation was not implausible, especially amid reports that Nvidia was ending RTX 5090 production in favor of more expensive AI data center and professional GPUs. Tom's Hardware also noted that high GPU prices driven by an AI-driven memory chip shortage remain unresolved.

Sources: Tom's Hardware