Quanta, a well-known contract maker of notebooks and other electronics, has sued Advanced Micro Devices for allegedly faulty ATI Radeon graphics processors that AMD no longer supplies. Quanta claims that defective graphics chips significantly impacted its profitability and demands compensation from AMD.

“Quanta has suffered significant injury to prospective revenue and profits,” the company said in the complaint. Quanta is seeking a jury trial and damages, according to court papers, reports Bloomberg news-agency.

AMD itself declines that the ATI Radeon graphics adapters, which Quanta used inside notebooks for NEC. According to AMD, the very same chips were used by Quanta and other manufacturers inside many different PC platforms without problems.

“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," said Michael Silvermanm, a corporate spokesman for AMD.

Back in 2008 it transpired to issues with high-lead chip packaging could fail due to heat issues with. At the time, Nvidia Corp. had to pay hundreds of millions of dollars to its partners who face failures and had to repair notebooks. ATI, AMD' graphics division, did not suffer from the same problem.

Tags: AMD, ATI, Radeon, Geforce, Nvidia, Failures