Quanta Suing AMD for faulty laptop chips

Advanced Micro Devices, Inc. (AMD) ended 2011 on a high note. AMD stayed competitive against companies like Nvidia and saw sustained sales. It saw a bright year ahead for 2012 with its December launch of the AMD Radeon HD 7970. However, a sticky situation is brewing for AMD to start off the new year.

If you have an Acer, Dell, or HP laptop then you have been in indirect contact with a company that is not happy with AMD. The company in question is Quanta Computer, a Taiwanese company that manufactures laptops for the previously mentioned companies. According to Quanta, AMD is in breach of contract after AMD chips used in laptops were defective. The laptops in question were made for Japanese computer maker NEC Corp.

Quanta stated the chips are suffering from from heat tolerance issues in a particular laptop line. However, no specific model numbers have been mentioned. Quanta is suing for breach of warranty, negligent misrepresentation, civil faud, and interference with a contract, claiming it "has suffered significant injury to prospective revenue and profits". AMD stated these claims are false because Quanta used the same chips in a different computer without the stated problems. If what AMD has said is true, Quanta could be facing a design issue rather than chip malfunction.

[via DailyTech]