Quanta Computer Accuses AMD of Selling Busted Notebook Chips, Seeks Damages

We're only four days into the New Year and already Advanced Micro Devices would probably like to take a mulligan. According to reports, Quanta Computer Inc. is angry at AMD and it's ATI division for allegedly selling defective mobile chips unsuitable for the toasty confines of a notebook. Quanta used the supposedly bad parts in notebooks made for NEC, many of which went on to malfunction. Now Quanta is suing AMD for breach of contract.

"Quanta has suffered significant injury to prospective revenue and profits," the company said in its complaint, according to Bloomberg.

The lawsuit also alleges breach of warranty, negligent misrepresentation, civil fraud, and interference with a contract, stopping just short of accusing AMD of pushing Quanta's grandmother down a flight of steps. Quanta wants a jury trial to settle the dispute and is hoping to score damages.

In an emailed response to Bloomberg, an AMD spokesman said it disputes Quanta's claims, dismissing them as being "without merit." AMD said Quanta is the only one complaining of supposedly faulty parts, and "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."