AMD Sued for Faulty Chips (AMD)

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The world’s second largest microprocessor maker, Advanced Micro Devices Inc. (NYSE: AMD), has been sued by Taiwan’s Quanta Computer Inc. for selling defective products to the world’s largest maker of white-label notebook computers. The allegedly defective chips, including some produced at AMD’s ATI Technologies unit, were used in notebooks Quanta made for Japan’s NEC Corp.

Bloomberg News reports that the suit was filed with the federal court in San Jose, California, seeking unspecified damages and a jury trial. Bloomberg’s report says that ‘[t]he lawsuit also claims breach of warranty, negligent misrepresentation, civil fraud and interference with a contract.” AMD has not responded to the filing.