Palit may acquire Galaxy to distribute excess stock
Palit is a leading OEM graphics card maker, but, according to industry reports, the company has found itself carrying excess Nvidia graphics chip inventory after miss-estimating market trends and over-ordering. However, to preserve the health of its own pricing, Nvidia has a strict rule prohibiting Palit from selling the chips to other companies. The move to acquire Galaxy, which does not have its own production facilities, will allow Palit to pass the chips to the new subsidiary, mitigating its losses, the sources explained.
Both companies are already discussing the acquisition.