Palit denies Galax factory closure over reported Nvidia chip shortage

By Grace Kim

Palit said the Galax factory has not closed and production of Nvidia GeForce RTX 50-series graphics cards continues as normal. The denial addresses reports that Palit could not guarantee enough Nvidia chips to keep the factory operating.

Has Palit closed the Galax factory?

No. Palit said Galax remains open, with no manufacturing facilities shut. The company also said Palit and Galax share the same factories, and production and business operations continue as normal at those sites.

“We are aware of recent reports and speculation regarding Galax’s business operations. We would like to clarify that these claims are inaccurate,” Palit 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.”

The statement covers both production and distribution. Customers can still buy Galax GPUs through existing distributors and retailers in domestic and international markets. Palit did not disclose factory output, inventory or shipment figures. Nvidia was not immediately available to comment on the reported availability of chips.

What started the closure reports?

An exclusive report from a Spanish outlet claimed Palit could no longer supply Nvidia GPU chips to Galax. Under that account, the factory could no longer build graphics cards, and keeping it open was no longer commercially viable for Palit.

The claim tied the alleged chip constraint directly to factory viability. That distinction drove the initial shock because it implied an abrupt end to card assembly at the shared production site tied to Nvidia's RTX 50-series GPUs.

Palit called those claims inaccurate. The initial report landed after Galax launched its latest flagship model, the Galax GeForce RTX 5080 HOF Extreme. A shutdown claim therefore raised immediate questions about output of a newly launched product.

Other reports said Nvidia was ending RTX 5090 production. They said the chipmaker would favor more expensive AI data-center and professional GPUs instead. Those reports gave the closure story supply-chain context, but Palit did not confirm them in its statement.

Nor does Palit's denial establish that Nvidia's overall RTX 5090 output policy is unchanged. Palit addressed its own factory status, while the reports about Nvidia's product priorities remained separate claims without direct confirmation from the chipmaker.

Why did similar reports return?

This was not the first closure rumor this year. Similar reports followed Palit Group's restructuring of its operations earlier in the year. Palit later announced plans to consolidate Galax operations at its headquarters in Taiwan, which reinforced speculation that the brand might stop GPU production.

Both rounds of reports centered on the same commercial risk: whether changes at Palit would reduce or end Galax card output. The latest statement denies any shutdown and says production remains normal. Palit also says the earlier closure speculation was false.

The company did not explain how the Taiwanese consolidation affects factory staffing, product mix or output volume. It also did not provide a timeline for completing that consolidation. The report therefore rests on Palit's account of continued manufacturing and continued retail availability.

What remains unresolved?

The statement settles Palit's factory status and the continued availability of Galax products. It does not settle the underlying Nvidia supply question, because Nvidia was not immediately available to comment. Palit also released no capacity, production or shipment data.

The source described GPU prices as skyrocketing because of an AI-driven memory chip shortage. That constraint concerns memory rather than the alleged shortage of Nvidia GPU chips supplied to Palit. Factory continuity alone does not remove that wider component constraint.

Palit's denial did not address retail price effects. It included no price cuts, allocation changes or supply commitments for distributors and retailers. It also gave no indication of how elevated GPU prices might affect demand for Galax's RTX 50-series cards.

What should buyers watch?

Availability through existing channels gives buyers a near-term way to test the company's claim. Actual shelf supply will show whether the factory and distributor network can maintain normal output without a broader change in Nvidia's consumer GPU allocation.

Palit's current position is that RTX 50-series production remains normal and no factory has closed. The next commercial test is whether Galax cards remain on retail shelves as AI-related memory constraints keep GPU prices elevated for buyers across the broader graphics-card market.