updated 01:45 pm EST, Wed January 4, 2012
Claims AMS sold faulty chips for NEC laptops
Contract manufacturer Quanta has filed suit against chip maker AMD. Taiwan-based Quanta alleges that AMD breached its contract by providing defective products that caused the computers, into which they were installed, to malfunction. The complaint, filed in the US District Court for the Northern District of California, specifically identifies the problem as being rooted in NEC laptops.
Quanta is the world's largest contract assembler for computers. Its customers also include HP, Dell and Acer. Quanta also has arrangements with Amazon, Apple, and RIM to produce the Kindle Fire, MacBook Air, and BlackBerry Playbook.
Quanta's lawsuit alleges breach of warranty, negligent misrepresentation, civil fraud and interference with a contract. The company is requesting a jury trial and is seeking unspecified damages.
AMD claims that Quanta's allegations and complaint are "without merit." AMD goes on to say that "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 is no longer being used in production. [via Bloomberg]