2012-01-05

Report: AMD sued over allegedly faulty chips

SAN FRANCISCO—Quanta Computer Inc., a Taiwanese contract manufacturer of notebook computers, filed a lawsuit Tuesday (Jan. 3) against Advanced Micro Devices Inc. (AMD), alleging breach of contract and saying AMD sold defective products, according to a report by the Bloomberg news service.

The suit, filed in U.S. federal court in San Jose, Calif., alleges that chips sold by AMD and its ATI Technologies didn't meet specified heat tolerances, according to the report. The chips were allegedly used in notebook computers Quanta made for NEC Corp. and caused the computers to malfunction, according to the report, which cites the court filing.

Quanta is seeking a jury trial and unspecified damages, according to the report. The suit also claims breach of warranty, negligent misrepresentation, civil fraud and interference with a contract, according to the report.

AMD did not immediately respond to request for comment on the report.

Report: AMD sued over allegedly faulty chips

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