AMD Sued For Shipping Faulty Chips

After years of lagging behind Intel in CPU design and behind NVidia in GPU design, AMD is finally making headway with $6 billion end of year profit coupled with the soft release of its Radeon 7970 GPU that beat NVidia's top offering and Bulldozer CPU that rivals Intel's top CPUs. Unfortunately for AMD, it seems that a half a decade old mistake is on its way to bite them in the back.

Taiwan-based Quanta Computer Inc. has filed a lawsuit against AMD alleging that it has sold them defective Radeon Xpress X1250 GPU chips that caused Quanta's designed laptops to overheat.

It is unlikely that you've heard of Quanta, but odds are you have a product built or co-designed by them. Quanta is the original design manufacturer for a lot of the most prestigious brands such as HP, Dell, Sony, Apple and Toshiba among others. Quanta's main job is to take those companies' designs and and tweak them into production-ready forms.

According to Quanta, the Radeon Xpress X1250 chips it received from were used in a series of laptops designed and manufactured for NEC. In its court filing the Taiwanese company accuses AMD of engineering negligence, claiming that AMD's poor thermal engineering caused the chips to overheat and malfunction. The lawsuit also accuses AMD of breach of warranty, negligent misrepresentation, civil fraud, and interference with a contract.

AMD denied all of Quanta's accusations and issued a brief statement, saying that: "AMD disputes the allegations in Quanta's complaint and believes they are without merit. 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."

AMD's objection is indeed reasonable as the X1250 chips have been used in tens of laptop series - several of them designed and produced by Quanta - with no other reported issues. This means that the problem was most likely caused by defects in packaging or other design components. However, it is still possible that the chips didn't live up to the specifications AMD committed to in their contract with Quanta.

Either way, it is definitely not in AMD's best interest to be involved in such a dispute with the market's largest original device manufacturer. While there is no such a thing as "bad relations" in business and Quanta will always use AMD's components whenever they out price the competitions' offerings; however, those "bad relations" can sway Quanta's decision in most cases when cost and performance are close. With that in mind, we expect AMD to settle with Quanta out of court.

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Comments

So agressive!!

I find it funny how everyone sues everyone. Why cant we all just get a long and admit to a mistake. If AMD made a mistake they should say sorry and fix it, though it sounds like the mistake was from the other company. Yet, I might just be too idealistic.

Biased much?

Yes MegaGames, we know you don't like AMD. Keep up the tabloids, we all come here for the "Fixes" anyway.

But do enjoy the next half year. That's how long you'll have to spend trying to discourage people from getting the Radeon 7XXX series. You "accidentally" misled people in a recent tabloid that the GeForce 6XX series was soon to retake the speed crown... I guess if soon means May/June because of the production problems Nvidia is having... where's the article on that? Have fun. :)

Although the cards have yet

Although the cards have yet to be benched and are releasing i believe this week or during CES they are fast on paper and about 30% faster then Nvidia's fastest card. But i don't care for ATI. ATI has really nice spec's across the board but compared to the spec's of a nvidia card you would think ATI would do circles around nvidia cards but they don't. There all show but no go. I will gladly wait for Nvidia's 6xx series to come out to replace my 8 month old 580GTX which handles pretty much everything at a decent but livable frame rate. The speed crown goes to ATI, how long it will hold for time will tell.

Actually, they have been benched.

Actually, REAL tech sites had their benchmarks for the Radeon 7970 out before Christmas. HardOCP, AnandTech, and Tom's Hardware to name a few. Indeed the 7970 is faster... and I don't care as most don't either. It all comes down to what card gives the best performance at respective price points and BOTH AMD & Nvidia have been very competitive since AMD took over ATI. Keep in mind I didn't say to go out and grab ANY of the Radeon HD 7XXX cards, just that MegaGames would do there usual best to fanboy Nvidia... which will be a challenge until Nvidia releasees the 6XX series. I wouldn't even consider replacing my GTX 570 until a month or so after both parties have their cards on store shelves.

And you're 10 years old? Durrrrr....

Typical dumb response. Knew it was going to come. I guess I should have put in the dumb response deterrent that my last two CPU are Intel and 3 of my last 4 GPU have been Nvidia. Here. I'll play in the school yard too. "No, you're a Nvidia fanboy.

Didn't say I liked any brand over the other. Just that MegaGames has always been full of Nvidia Fanboys.

He's not Dumb. AMD's

He's not Dumb. AMD's Bulldozer processors are outmatched by Intel's 2500k to say that intel's 2500k beats bulldozer by a mile is sad indeed. Go look at the benchmarks before you say anything. Look who's the dumb nigger now dumbass.

Yes and no

Yes and no. Currently you are correct that Bulldozer is beaten fairly easily by Intel, but unfortunately due to the Tech that's used in Bulldozer Windows 7 can't fully use Bulldozers cores. It's got something to do with the threads and how they are used (I can't remember exactly). So the current Benchmarks are Inaccurate at best. Until Windows 7 is patched (and it will be) we won't know the full potential of Bulldozer. The patch is supposed to give something from about 5-15% performance increase. There was a patch available but it messed up a lot of peoples rigs so MS too it down. From what I've read it can give significant performance boots for certain areas (Crysis I think), but then can slow down others (WinZip). Lets wait and see what heppens.

I just heard that same thing

I just heard that same thing from a friend of mine, i guess until those new benchmarks come out we won't know. But those benchmarks out right now really make the bulldozer look like a Ferrari with honda civic engine. all show but no go.

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