Industry sources claim Palit will buy Galaxy to get rid of NVIDIA chips
Palit Microsystems is in talks to buy Hong Kong-based graphics card maker Galaxy, source claims, citing informed industry participants.
As you know, Palit is one of the largest OEM manufacturers of graphic cards – annually the company ships more than 10 million. products. In 2021, Palit acquired Gainward and less than two years later launched its own products under this brand, and in September 2021 it debuted on the European market with another brand – Vvikoo, whose products are positioned as solutions for enthusiasts. Under these conditions, the takeover of a competing brand looks like a routine operation.
However, the deal is said to have another reason. The fact is that Palit at one time misjudged its ability to sell products based on NVIDIA GPUs. This led to the formation of significant stocks of element base, which, according to the terms of the contract, Palit cannot sell to other manufacturers – otherwise, NVIDIA could not maintain the desired price level for its products. The purchase of Galaxy will allow Palit to solve this problem: by transferring surplus GPUs to its subsidiary, it is possible to free the core business from financial losses associated with the situation.
Galaxy was founded in 1994 and received NVIDIA Partner status in 1999. For the past few years, she has been trying her hand at the motherboard market. Interestingly, Galaxy does not have its own production – other companies produce products for this brand on OEM terms.