Quanta has filed a lawsuit against AMD, alleging the chipmaker sold defective products. World's largest contract maker of laptops claims AMD and its ATI division sold chips that caused notebooks to malfunction because they didn't meet heat tolerances and were unfit for particular purposes.

AMD spokesman Michael Silverman says his company disputes Quanta's allegations and believes they are without merit. In an e-mailed message to Bloomberg, Silverman states AMD is aware of no other customer reports of defective chips, and points out that Quanta has itself acknowledged to AMD that it uses the identical chip in large volumes in a different computer platform that it manufactured for NEC without such issues.
AMD and its ATI Technologies Inc. unit sold chips that didn