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Quanta Sues AMD Over Microchips for Notebook Computers

Quanta Sues AMD Over Microchips for Notebook Computers

Quanta Computer Inc. (2382), the world’s largest contract maker of notebook computers, sued Advanced Micro Devices Inc. (AMD) for breach of contract, alleging the chipmaker sold defective products.

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AMD and its ATI Technologies Inc. unit sold chips that didn’t meet heat tolerances and were unfit for particular purposes, Taoyuan, Taiwan-based Quanta claimed yesterday in a federal court filing in San Jose, California. The chips were used in notebooks Quanta made for NEC Corp. (6701) and caused the computers to malfunction, according to the filing.

“Quanta has suffered significant injury to prospective revenue and profits,” the company said in the complaint. Quanta is seeking a jury trial and damages, according to court papers.

AMD, with more than $6 billion in annual revenue, is the second-largest maker (AMD) of computer processors, behind Intel Corp., which has more than $50 billion in annual revenue.

Read More/Source: Bloomberg

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