Chips

Palit Pushes Back Against Reports of Galax GPU Factory Shutdown

The graphics card maker has issued a statement refuting claims that it closed its Galax production facility due to insufficient Nvidia chip supplies.

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

Palit has issued an official denial of reports suggesting it shuttered its Galax factory, which manufactures Nvidia RTX 50-series graphics cards, over concerns about inadequate supplies of Nvidia processors. In a statement, the company asserted that manufacturing operations remain active, no facilities have been closed, and Galax GPUs continue to be sold through distributors and retailers serving both local and global markets.

Asus RTX 5080 Noctua Edition
(Image credit: Noctua)

We are aware of recent reports and speculation regarding Galax's business operations. We would like to clarify that these claims are inaccurate. 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.

Palit

The company further noted that Galax and Palit operate from shared manufacturing locations and that both production and business activities are proceeding normally. Nvidia declined to offer immediate comment on the speculation regarding chip availability.

The closure rumors surfaced following a report from a Spanish technology outlet on October 28, 2026, claiming that Palit lacked sufficient Nvidia GPU inventory to sustain Galax production. The timing proved particularly notable given that Galax had recently unveiled its flagship Galax GeForce RTX 5080 HOF Extreme model. The speculation suggested that maintaining the factory would no longer make economic sense for the company.

The denial comes as a relief to the GPU market, which has already witnessed the departure of major consumer graphics card manufacturers. The unfounded reports about Galax ceasing production gained traction partly due to industry chatter that Nvidia was scaling back RTX 5090 manufacturing in order to prioritize higher-margin artificial intelligence data center and professional GPU products.

This marks the second time in 2026 that Galax has faced closure speculation. Earlier in the year, Palit underwent operational restructuring that triggered comparable reports about the GPU brand's future. Those concerns intensified after Palit announced it would consolidate Galax operations at its Taiwan headquarters. Both rounds of speculation have now been dismissed as inaccurate, and Galax graphics cards should continue appearing on retail shelves. Nevertheless, the broader challenge of elevated GPU pricing driven by artificial intelligence-related memory chip shortages persists.

Source: Tom's Hardware · Reporting supplemented by The Silicon Ledger staff.