Zotac, which manufactures some of the best graphics cards for gaming, has issued a stark warning about the consequences of the escalating memory shortage on its official online store in Korea, Zotac Korea TagTag Mall. The company warns that current conditions are "serious enough to raise concerns about the very survival of graphics card manufacturers and distributors going forward."
The original reason for Zotac's urgent message was to notify its Korean customers that the company had suspended its newly launched 2% cashback rewards program, but the company went on to discuss the state of the graphics card market more broadly. You can find a translation of Zotac's message, courtesy of Harukaze5719, embedded below. Click to expand the X post.
Full post translate: ---------------Hello, this is ZOTAC Korea.Recently, we announced a 2% reward points policy.We sincerely apologize for having to make another announcement regarding reward points after only one month.The current situation is extremely serious—serious… pic.twitter.com/Z2ZwIrbzjyJanuary 27, 2026
Zotac paints a grim picture of some graphics card models vanishing from shelves for an extended period in the near future. The company fears that it will be impractical to maintain a steady supply chain for GPUs other than those manufactured on Samsung's processes, which would only apply to remaining models from the RTX 30-series family. Adding salt to the wound, the company says the price of the silicon that's going to partners has skyrocketed to unreasonable levels.
The company uses the GeForce RTX 5090 and the GeForce RTX 5060 as prime examples of the outrageous price hikes. Consumers have already felt the ripples in the retail market over the last trimester. The GeForce RTX 5090, which could typically be found for around $2,500 in November 2025, now sells for $3,300 or even far more, a hike of at least 65%. Meanwhile, the same GeForce RTX 5060 that retailed for $300 around the same time has gone over $350, equivalent to a 17% increase.
Zotac claims it's doing its best to keep graphics card pricing as low as economically possible. The company's decision to axe its Korean rewards program, as insignificant as 2% may seem, could be a strategy to help maintain profit margins amid rising memory chip costs. But if the company's statements are accurate, further price hikes and supply shortages may be all but inevitable.
Zotac's existential worries may not be overstated, especially for graphics card partners that only sell GPUs from a single chipmaker. While many hardware companies have dipped their feet into other product categories, like motherboards, AIO liquid coolers, or gaming peripherals, not every company has diversified into these categories in recent years, and the sudden change in market conditions leaves little runway for adjustment.
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