Notebook PC Maker Sues AMD for Defective Chips

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 in a federal court filing in San Jose, California.