Quanta sues AMD over alleged defective notebook chips

AMD has been accused of delivering faulty processors to a major notebook PC maker. Bloomberg reports that Taiwan-based Quanta filed the lawsuit earlier this week, alleging that AMD and its ATI division gave Quanta defective processors that did not meet the company's heat tolerances.

Quanta is the world's largest contract manufacturer for notebook PCs. It makes laptops for a number of companies including Acer, Dell and HP. In this case, the chips from AMD that Quanta says were defective were put into notebooks made by Quanta for NEC Corp. Quanta said the faulty parts caused the notebooks themselves to not work properly. In a statement the company said, "Quanta has suffered significant injury to prospective revenue and profits."

In a statement of its own, AMD said that it " ... disputes the allegations in Quanta’s complaint and believes they are without merit." It added, "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."

Quanta is seeking both damages from AMD as well as a jury trial in its lawsuit.

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