Quanta said AMD chips it used in NEC notebooks did not meet industry-standard heat-tolerance specifications, causing the computers to fail. AMD is disputing the claim.
Computer reportedly is suing Advanced Micro Devices for allegedly selling
defective processors that were used in notebooks Quanta had made for NEC.
In a lawsuit
filed Jan. 4 in San Jose, Calif., Quanta officials are accusing AMD, the
world's second-largest computer chip maker behind Intel, of selling processors
that overheated in certain situations, according to a Bloomberg News report.
In its filing,
Quanta said the chips caused the NEC notebooks to stop working properly, and claims
that the faulty chips threaten to damage its reputation and business. "Quanta
has suffered significant injury to prospective revenue and profits," the
company wrote in its complaint.
levels multiple claims against AMD, including negligent misrepresentation,
civil fraud, breach of warranty and interference with a contract. Quanta is
looking for a jury trial and damages.
Michael Silverman, in a statement to Bloomberg, disputed Quanta's claims, and said
that the allegations against the chip maker "are without merit." Silverman also
noted that there have been no other complaints-from Quanta or other systems
makers-regarding the chip in question, which he said AMD no longer sells.
"AMD is aware
of no other customer reports of the alleged issues with the AMD chip that
Quanta used, which AMD no longer sells," he wrote. "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 chip in
question reportedly is the ATI RS600ME integrated graphics chip. AMD acquired
its graphics business when it bought ATI in 2006 for about $5.4 billion.
Quanta, with more than 30,000 employees, is the world's largest original design
manufacturer (ODM) of notebooks, and makes systems on contract from such major
OEMs as Hewlett-Packard, Dell, Acer, Fujitsu, Toshiba and Lenovo. It also makes
other devices for vendors ranging from Cisco Systems to Research In Motion.
essentially makes the systems, which are then rebranded by the vendors.