AMD gets sued by Quanta, due to faulty laptop chips

AMD may have had a successful Radeon HD 7000-series launch, but 2012 is not starting off well for their laptop division. Quanta Computer, a Taiwanese company that manufactures laptops for companies such as HP, Dell, Acer, and others, is suing AMD for an alleged breach of contract.

Quanta Computer are claiming that AMD chips used in laptops made for NEC were defective. No specific models have been mentioned, but both AMD and ATI are mentioned in the report, meaning that the complaints could cover GPUs, CPUs or, both. The problem that Quanta have with the chips is heat tolerance issues in a particular laptop line, but again, no models are mentioned.

Quanta claims that it "has suffered significant injury to prospective revenue and profits" and they are suing for breach of warranty, negligent misrepresentation, civil fraud, and interference with a contract.

AMD have come out swinging saying that Quanta's claims are false, noting that Quanta used the same chips in a different computer for NEC and didn't experience the same problems. If true, this would suggest the problem was due to the design of a particular computer, and not AMD's chips. AMD's response to the complaint also says that the chip in question is no longer being sold.