Quanta sues AMD, claims it sold defective products

Yikes. Quanta -- also known as the planet's largest contract maker of laptops -- has just slapped a nasty lawsuit on the world's second-largest chipmaker. According to Bloomberg, Quanta is alleging that AMD and ATI sold chips that "didn't meet heat tolerances and were unfit for particular purposes." Those chips were then used in NEC-labeled machines, and caused them to "malfunction" in some regard. No big deal? Hardly. In the complaint, Quanta states that it has "suffered significant injury to prospective revenue and profits," and it's seeking a jury trial and damages for good measure.

As if that weren't harsh enough, the suit also claims "breach of warranty, negligent misrepresentation, civil fraud and interference with a contract." When pinged for comment, AMD's spokesman, Michael Silverman stated: "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." Somewhere, Intel has to be smirking.