Wednesday, February 2, 2011
Intel disclosed a design flaw in a chip that will delay the rollout of new computers based on its latest technology, and estimated the cost at about $1 billion in repairs and reduced revenue.
Intel discovered a design issue in a recently released chipset, dealing a setback to the ramp of its new microprocessor and resulting in charges and a reduction in first-quarter revenue. Don Clark has details.
Nearly eight million of the accessory chips have been shipped since Jan. 9 to hardware companies, which install them on motherboards in laptop and desktop PCs.
Intel has halted shipments of the flawed chip and expects to begin shipping a new version in late February. That will postpone the release of mainstream laptops and desktops with its newest processor, which were expected to hit retail stores in coming weeks.
Intel is offering to repair or replace all of the affected boards and systems, for an estimated cost of $700 million that will trigger charges against its 2010 fourth-quarter and 2011 first-quarter earnings. The company also expects $300 million less revenue in the current period because of the problem.
By: DocMemory
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