AMD Being Sued for Selling Defective Chips

Written by John Ponio    Wednesday, 04 January 2012 16:47

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Contract laptop manufacturer Quanta, who makes laptops for companies such as Dell and HP, is suing AMD because they believe that AMD sold them defective chips that overheated in their laptops. According to the Bloomberg article, Quanta claimed that "AMD and its ATI Technologies Inc. unit sold chips that didn’t meet heat tolerances and were unfit for particular purposes." Michael Silverman, a spokesman for AMD, said about this, "AMD is aware of no other customer reports of the alleged issues with the AMD chip that Quanta used, which AMD no longer sells. In fact, Quanta has itself acknowledged to AMD that it used the identical chip in large volumes in a different computer platform that it manufactured for NEC without such issues." The article didn't say how much the damages that Quanta is suing for amount to, but it doesn't seem like AMD is very worried about this. We'll see how it plays out.