Laptop Maker Quanta Sues AMD, Claims AMD Supplied Defective Chips

Brad Chacos

What’s it look like when two 800 lb. gorillas engage in brutal battle? Literally, it’s probably pretty scary, but we’ll find out the figurative answer soon enough, because today Quanta – the world’s largest contract notebook maker – slapped AMD with a breach of contract lawsuit. The company claims that AMD (and ATI) sold them defective chips that overheated and caused NEC-branded laptops Quanta made to malfunction, dealing Quanta “significant injury to prospective revenue and profits.”

That’s not all; Bloomberg reports that Quanta’s suit also alleges all kinds of fraud, breaches, negligence and more. The company is looking for damages and a full jury trial. On its end, AMD says Quanta is, well, full of crap.

“AMD is aware of no other customer reports of the alleged issues with the AMD chip that Quanta used, which AMD no longer sells,” Silverman told Bloomberg. “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.”

By the way, that's not an image of one of the malfunctioning notebooks. Quanta simply says the AMD chips didn't meet heat tolerances -- no exploding involved.

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