Quanta Sues AMD Over Microchips for Notebook Computers

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

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. and caused the computers to malfunction, according to the filing.