Zotac warns RAM shortages could threaten survival of graphics card makers

Zotac has warned that ongoing memory shortages and looming GPU supply cuts are creating serious pressure across the graphics card market, following a statement issued by its Korean division addressing rising prices and changes to retailer reward programs.

In a notice posted to customers, ZOTAC Korea said the situation has become severe enough to spark concerns about the long term stability of GPU manufacturers and distributors, citing constrained memory supply and reduced graphics card production volumes.

The comments arrive as PC hardware pricing remains volatile in several regions, with next-generation NVIDIA cards drawing particular attention from consumers after reports of steep cost increases and limited availability.

ZOTAC Korea cites memory shortages and rising RTX prices

In a statement, the company wrote: “The current situation is extremely serious—serious enough to raise concerns about the very survival of graphics card manufacturers and distributors going forward.”

It added that “memory supply remains constrained, and it has been announced that GPU supply volumes will also be reduced,” while noting that “several models are expected to be unavailable for an extended period of time.”

ZOTAC Korea also expressed uncertainty about future manufacturing stability, stating: “On a personal note, there are growing concerns that, aside from GPUs manufactured by Samsung, stable supply going forward may no longer be feasible.”

Price increases were highlighted as another major factor behind the announcement. The company said, “Furthermore, the prices we have recently received are at an unreasonable level.”

It continued: “Not only has the price of the RTX 5090 increased sharply, but the price hike for the 5060 is also substantial.”

ZOTAC Korea concluded its notice with an apology to customers, writing: “We sincerely apologize once again and kindly ask for your understanding, as this decision was made unavoidably.”

This comes as RAM prices continue to skyrocket. Reports state NVIDIA is preparing to slash production of some of its most popular graphics cards due to the component shortage, and they may be replaced with the RTX 3060, which uses an older version of RAM.