The world's biggest contract manufacturer of laptops Quanta has taken legal action against AMD for an alleged breach of contract.
Quanta claimed AMD sold defective chips that could not meet required heat tolerances and were unfit for certain purposes, Bloomberg reported after viewing a court filing.
Quanta, which produces PCs for major vendors including HP and Dell, was using AMD chips to build laptops for NEC. The processors caused the machines to malfunction, according to Quanta.
AMD is aware of no other customer reports of the alleged issues with the AMD chip that Quanta used.
"Quanta has suffered significant injury to prospective revenue and profits," Quanta claimed in its filing.
AMD has disputed the allegations, however, saying it 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," AMD spokesperson Michael Silverman said.
"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."
According to its website, Taiwanese Quanta produces one out of every three laptop PCs in the world and all the top ten PC companies in the world use the company's services in some way.
AMD had its troubles in 2011, announcing in November it was planning to cut 10 per cent of its workforce by 2012.
However, it still found time to launch some 16-core chips in the same month more cores than any other x86 processors available today. It claimed the Opteron chips were designed for use in cloud providers' database.
-
Asus ZenScreen Fold OLED MQ17QH reviewReviews A stunning foldable 17.3in OLED display – but it's too expensive to be anything more than a thrilling tech demo
-
How the UK MoJ achieved secure networks for prisons and offices with Palo Alto NetworksCase study Adopting zero trust is a necessity when your own users are trying to launch cyber attacks
-
Why the CPU you chose is the key to Windows 11The end of Windows 10 is on the horizon – it’s time to upgrade to an fTPM-protected processor
-
AMD and Intel’s new x86 advisory group looks to tackle Arm, but will it succeed?News The pair will look to make x86 CPU architecture more interoperable
-
AMD’s patient roadmap has become a highway to successAnalysis While everyone was focused on Nvidia’s meteoric rise, AMD was preparing the hardware needed to take the fight to its long-time competitor
-
AMD just made a big statement in the AI PC race with its Ryzen AI Pro 300 series processorsNews With all eyes focused on the AI PC craze, AMD looks to one-up the competition
-
AMD’s new Instinct GPUs might just blow Nvidia out of the waterNews The chip maker unveiled its newest Instinct GPU series in San Francisco today – and it’s very bullish on performance in the race with Nvidia
-
AMD Advancing AI live: All the news and updates as they happenedLive Blog ITPro has been live on the ground at the AMD Advancing AI conference in San Francisco this week – here's everything we learned in the big keynote with CEO Lisa Su
-
Why the world is about to be swamped with AI PCsNews With adoption rates set to surge, AI PCs will become far more mainstream in years to come
-
AMD expands CPU portfolio with new EPYC 4004 SeriesNews AMD has released its new EPYC 4004 Series processors to power entry level system designs and deliver cost savings to SMBs
