AMD sued over 'defective' chips

Taiwan's Quanta Computer, the world's top contract laptop PC maker, said on Thursday it is suing chipmaker Advanced Micro Devices in a US court over defective products.

A Quanta official said the issue would not have any impact on earnings in 2011 and 2012.

According to a company source, microchips sold by AMD in 2007 had caused overheating problems in Quanta's notebook computers.

The source said Quanta had investigated the issue and had tried to settle with AMD without success over the past few years so it decided to take legal action.

AMD representatives were not immediately available for comment.

(Reporting by Clare Jim; Editing by Chris Lewis)