Quanta Sues AMD For Faulty Laptop Chips

Quanta Computer, a Taiwanese company that manufactures laptops for HP, Dell, Acer, and others, is suing AMD for an alleged breach of contract, claiming that AMD chips used in laptops made for NEC were defective. No specific model numbers are mentioned, but both AMD and ATI are mentioned in the report, meaning that the complaints could cover CPUs, GPUs, or both.

Quanta's problems with the chips stem from heat tolerance issues in a particular laptop line, though again no specific model numbers are mentioned. Because of the issues, Quanta claims it "has suffered significant injury to prospective revenue and profits" and is suing for breach of warranty, negligent misrepresentation, civil faud, and interference with a contract.

For AMD's part, it has said that Quanta's claims are false, noting that Quanta used the same chips in a different computer for NEC and didn't have the same problems. If true, this would suggest that the problem was due to the design of the particular computer rather than AMD's chips. AMD's response to the complaint also says that the chip in question is no longer being sold.

Source: Bloomberg