Nvidia RTX GPU vendor Palit denies its Galax factory has closed due to a shortage of chips

Palit released an official statement denying recent speculation that it has closed its Galax factory — where it makes Nvidia RTX 50-series GPUs — because it cannot guarantee a sufficient supply of Nvidia chips. According to the company’s press release, its operations continue as usual, it has not shut down any factories, and customers are able to purchase Galax GPUs through existing distributors and retailers for both domestic and international markets.

“We are aware of recent reports and speculation regarding Galax’s business operations. We would like to clarify that these claims are inaccurate,” the company said. “Galax continues to operate as usual. No manufacturing facilities have been shut down, and Galax products remain available through our sales channels in both domestic and international markets.” It also mentioned 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 the availability of chips.

The initial news of a possible Galax closure came as a shock to many, especially as the brand had just launched its latest flagship model, the Galax GeForce RTX 5080 HOF Extreme. The rumors stemmed from an exclusive news report by a Spanish outlet (expand the post above) claiming that Palit could no longer supply Nvidia GPU chips to Galax, meaning it could no longer build graphics cards at that facility, and keeping it operational was no longer viable for the company. Thankfully, the sources were wrong, so we are not going to see another major consumer GPU brand like EVGA leave the market. Still, the speculation that Galax would stop GPU production was not implausible, especially as we’ve been seeing reports that Nvidia was ending RTX 5090 production in favor of more expensive AI data center and professional GPUs.

This wasn’t 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. This was further reinforced after Palit announced that it would consolidate Galax operations at its headquarters in Taiwan. Thankfully, the speculation both then and today is false, and we will continue seeing Galax GPUs on retail shelves. However, it still doesn’t solve the skyrocketing GPU prices brought by the AI-driven memory chip shortage.

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