Quanta claims that AMD sold faulty chips, way back in 2006. AMD denies fault saying no other customers had the problem.

World’s largest OEM notebook maker sues AMD over hot chips

Chipmaker AMD is facing a lawsuit from the largest OEM notebook manufacturer Quanta, with the notebook maker alleging that AMD sold chips that were too hot and unreliable.

It seems that the suit relates to AMD chips that featured in notebooks that Quanta built for NEC some time in 2006. The part in question is an integrated graphics chip marketed as the ATI RS600ME.

Quanta fired a legal broadside at AMD, accusing the company of civil fraud, breach of warranty and a host of other civil claims in addition to the central claim that the company sold faulty chips to Quanta.

"Quanta has suffered significant injury to prospective revenue and profits," Quanta said in the filing while AMD disputes the claim and said that it was not aware of other customers with the same chip.

"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," said an AMD spokesman quoted in a Bloomberg report.

It’s somewhat puzzling that such a case should take until now to come to light and it probably doesn’t speak well for the relationship of AMD and one of the world’s leading notebook manufacturers.

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