Galax GPU factory closure report denied by Palit and Galax

Felix Laurent 29 Oct 2026 3 min read

big tech

A report said Palit would close the factory of its graphics card brand Galax because Nvidia chips are scarce. Palit and Galax have since denied it. This article separates what was reported from what the companies confirmed.

What the report said

The Spanish site El Chapuzas Informático published the original exclusive on Oct 27. It cited industry sources and wrote that Palit would have decided to close the Galax factory. The headline pointed to a lack of Nvidia chips as the reason. According to Back2Gaming, the outlet framed the closure as a likely outcome, not a confirmed decision.

The report also said Galax, its European brand KFA2 and its Hall of Fame (HOF) line would eventually disappear. Resources would move to Palit's other brands, Palit and Gainward. El Chapuzas tied the shortage to Nvidia's GB202 chip with 32GB of GDDR7 memory, used in the RTX 5090. No English-language outlet has confirmed that detail.

On Oct 28 the account pirat_nation repeated the story on X. It softened the claim: Palit was reportedly considering a shutdown, not deciding on one. The post added that makers favor the more profitable AI and data-center market. These extra points come from that one post and are unverified. The companies answered the same day.

What Palit and Galax said

Palit and Galax issued an official statement denying that Galax is shutting down graphics card production, according to VideoCardz. Galax said that no manufacturing facilities have been shut down. It said its products remain on sale in domestic and international markets. Wccftech reported that Palit flagged the reports as inaccurate.

The statement also says Galax and Palit, as members of the same group, share production sites. TweakTown reports that next-generation HOF cards are still in development. This is not the first time Palit has had to deny the end of Galax.

The spring 2026 precedent

Galax, founded in Hong Kong in 1994 as Galaxy Microsystems, has been part of the Palit group since 2007. In April 2026, a customer letter on Galax's Brazilian site said Palit had taken full control of the brand. It said the previous organizational structure had closed, Back2Gaming reports.

Palit answered on Apr 29 that Galax "was not ceasing operations." It said management of the Galax, KFA2 and HOF brands was moving to Palit Group headquarters in Taiwan, as a "pre-planned global initiative." Guru3D reported at the time that Galax's Hong Kong office was closing. The brand has kept selling cards since, but the pressure behind those changes has not gone away.

Why chip supply is a real question

Nvidia's gaming supply has been tight all year. In January, reports from Taiwan and leaks to partners said Nvidia would cut GeForce RTX 50 shipments by 15% to 20%, with some reports citing up to 40%. The reason given was a memory shortage, as GDDR7 and other memory goes to AI data centers.

Later reports said Nvidia raised prices to board partners for models with 16GB or more, and delayed the RTX 50 Super refresh. Nvidia has not confirmed these figures. They do explain why a report about a partner running short of chips found an audience.

What stays open

The denial covers the factory and ongoing production. It does not explain how many Nvidia chips the brands receive. The Italian site Tom's Hardware Italia noted that neither company gave figures on supply volumes or on the silicon reserved for each brand.

So is Galax closing? Not according to anything confirmed. The original report rests on anonymous sources, it framed the closure as likely rather than decided, and both companies deny it on the record. The shortage claim, though, is neither confirmed nor refuted. Palit has now restructured Galax once and denied its end twice this year. Until it publishes supply figures, the only confirmed fact is that Galax cards are still in production.